The International Monetary Fund has declared the Deutsche Bank one of the most significant net contributor to systemic risks. A stress test was recently failed by the US subsidiary of the bank as a result of weak risk management and financial planning according to the Federal Reserve. Correspondingly, shares of Deutsche Bank declined to €12.37 per share.
Several fear that if the German financial system continues to decline it may affect others along with it and in turn would produce a possible global banking crisis. The IMF warns that the possibility would affect the global system more in comparison to the German banks.
Analysts have cautioned that the bank may be driven into a financial crisis that of the Lehman Brothers.
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