Germany’s Deutsche Bank takes a dip while Bitcoin goes uphill
Deutsche Bank AG’s shares fell as much as 14% on 24 March, marking the bank’s third consecutive day of losses. Its stock dropped as low as €7.95.
Despite recovering from its worst losses previously, the bank closed more than 8% lower at €8.54 on the same day.
Source: MarketWatch
Concerns about Germany’s largest lender rose days after Credit Suisse Group AG was forced into a takeover by its larger rival UBS Group AG. Following the failure of Silicon Valley Bank (SVB) in the U.S. earlier this month, investors are hunting across the globe for institutions deemed vulnerable.
With major footprints in both Europe and the United States, the Deutsche Bank is a significant player in the global banking system. It provides lending and other services to a number of multinational corporations globally.
German Chancellor Olaf Scholz told reporters at an EU summit in Brussels:
“Deutsche Bank has thoroughly modernized and reorganized its business model and it is a very profitable bank. There is no reason whatsoever to be concerned.”
Shares of other European banks also fell on 24 March, though not as much as Deutsche Bank. Another German bank Commerzbank AG’s stock fell 6.5%; British bank Barclays PLC’s stock fell 5.8%; and the stock of France’s most valuable bank BNP Paribas SA fell 5.27%.
Earlier this week, Germany’s Deutsche WertpapierService Bank (Dwpbank) announced that it was developing wpNex, a new platform that will offer Bitcoin (BTC) trading to retail customers of all of its 1,200 affiliates in the second half of this year.
It should be noted here that BTC’s price tumbled when the SVB collapsed. But since then, its value has surged by nearly 40% and it doesn’t show any signs of slowing down for now. It was trading at $27,443.03 at press
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