Deutsche Bank passes Federal Reserve tests
The German institution, for the second consecutive year, managed to come out with its head held high before the requirements imposed by the agency
Deutsche Bank successfully passed the Federal Reserve’s stress tests for the second year in a row, even with stricter requirements imposed by the coronavirus crisis, the US financial institution announced Thursday night to Friday.
Financial supervisors applied strict conditions to larger institutions to protect their capital resources. Profit sharing through share buybacks and increased dividends are therefore ruled out until the end of September.
For Deutsche Bank, receiving an impeccable assessment from financial supervisors was much more than a relief. Germany’s largest banking institution, with its business in the United States, had not passed Federal Reserve tests a few times in previous years.
The director of the Deutsche Bank for the United States, Christiana Riley, and the president of the board of directors, Christian Sewing, were very satisfied that this time, as in 2019, everything went well.
The stress test result was “an important step forward”, Riley and Sewing wrote in a communication sent to the entity’s employees. It also said that change takes time, and that Deutsche Bank continues to make progress, that it is on the right track.
According to them, investors, clients and also supervisors recognize the positive development of the company.
Although the US Federal Reserve gave good news to the 33 banks examined, the stress test was still a bitter drink for the sector.
K. Tovar
Source: dpa
