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Revealed: The Greatest Risk To The Financial System – MarketWatch

June 30
15:02 2016

FRANKFURT–Deutsche Bank AG is the riskiest financial institution in the world as a potential source of external shocks to the financial system, according to the International Monetary Fund.

“Among the G-SIBs (globally systemically important banks), Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse,” the IMF said in its Financial Sector Assessment Program.

The institution also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally.

“In particular, Germany, France, the U.K. and the U.S. have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country,” the IMF added.

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