Deutsche Bank – The Ultimate TBTF Bank (or G-SIB) With Total Assets 45.3% Of Economy

Deutsche Bank is the poster child of “Too Big To Fail.” Its stock price has plummeted since before The Great Recession and never recovered. (Italian bank Unicredit is even worse!).

dbuni

Both Deutsche Bank and Unicredit are G-SIBs (Global Systemically Important Banks). But Deutsche Bank has the honor (or horror) of having  the highest total asset in percent of GDP of any bank at 45.3%.

polleit2_5

Think about that. With a fragile Eurozone, Brexit and … Italy, a Deutsche Bank failure could be disastrous for Germany. And the European banking system.

While Deutsche’s capital ratios seem fine, their net revenue growth of 2018 is projected to be -14.8%. 

dbann

And Deutsche leads global banks in Q1 trading losses in terms of Value at Risk (VaR). a 12x VaR trading blowup.

DB loss in context

In you think a big bank like Deutsche Bank can’t fail and create global shock waves, remember that the Germans thought the WWII battleship Bismarck was unsinkable too. 

bis01s

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s