Now the IMF has called on Deutsche Bank to do more to reassure investors
Officials from the International Monetary Fund (IMF) have today called on troubled German lender Deutsche Bank to do more to reassure investors.
Speaking at a press conference today, Peter Dattels, deputy director of the monetary and capital markets department at the IMF, said Deutsche Bank needed to "continue to adjust to convince investors that its business model is viable going forward, that it has addressed the issues of operational risk arising from litigation and so on".
The comments come at a time when the German giant is facing a potential $14bn (£11bn) fine from the US Department of Justice for mis-selling mortgage-backed securities.
Meanwhile, reports emerged last week suggesting Chancellor Angela Merkel was not willing to offer the bank state assistance, and the bank's share price has been on something of a rollercoaster ride as a result.
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Shares in Deutsche Bank closed up 2.8 per cent at €12.07 in Frankfurt today.
Dattels also noted that European banks more generally were performing weakly compared with their US counterparts, and pointed the finger at European bank's legacy issues with non performing loans along with inefficiencies with many lenders' business models, such as having too many branches.
Others who have recently sounded warnings about the state of Europe's banking sector are Credit Suisse boss Tidjane Thiam and former chancellor of the exchequer Lord Lamont of Lerwick.
However, earlier today, the European Central Bank noted that, although there were certainly some individual lenders which were struggling, it did not see signs of a wider banking crisis across the Eurozone.
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The IMF also warned in its Fiscal Monitor today that global debt, which had reached $152 trillion or 225 per cent of world GDP by the end of 2015, was at an all-time high and it was hindering economic growth.