Shares of Germany’s largest lender Bank Deutsche plunged, find out why this happened…

Shares of Deutsche Bank, Germany’s largest bank saw their value drop significantly on Friday. The decline in Deutsche Bank’s shares had an impact on other major banks in Europe As a result, German Chancellor Olaf Scholz expressed confidence in the bank seeking to allay concerns about the health of the global financial system that sent shockwaves through markets.

Deutsche Bank shares were said to have fallen sharply on the German stock exchange, with the share price falling as much as 14% before closing down 8.5% The decline was attributed to a significant increase in the cost of credit default swaps, which are used to insure bondholders against the risk of default on its debt.

This increase in the cost of credit default swaps raised concerns about Deutsche Bank’s financial health and contributed to the decline in the bank’s share price. The increase in the cost of insuring debt, as seen in Deutsche Bank’s case, was also a sign of trouble for Swiss lender Credit Suisse.

The bank was facing long-running issues and concerns, which led to customers withdrawing their money and its shares declining. These troubles ultimately resulted in a government-backed rescue by rival UBS.

which was arranged hastily on a Sunday in order to prevent further upheaval in the global financial system. The rescue was aimed at restoring confidence in Credit Suisse and avoiding a potential collapse that could have had a significant impact on the wider financial system.