Another major bank in Europe is on the brink of collapse. Despite many efforts, the financial health of that bank has not improved. The impact of the banking crisis in America and Europe has also been seen in many other countries.
The banking crisis that started in America is increasing in Europe. Another bank in Europe facing credit default is Deutsche Bank. Because of this, its share has fallen drastically. The default rate of bank-insured loans has reached a four-year high. After Credit Suisse, Deutsche Bank is now raising investor tensions.
The bank's shares fell by more than 14 percent after the bank's loan default swap took off. At the same time, the share decreased by 6.5 percent.
Deutsche Bank's CDS is a type of insurance, which provides cover to the company's bondholders against any default event. Deutsche Bank's credit default swaps rose 200 basis points, the most since early 2019, according to data from Standard & Poor's Market Intelligence. A 142 basis point increase was recorded in the bank's credit default swap a few days ago.
According to experts, the eyes of investors have been focused on Deutsche Bank for some time. Just as Credit Suisse Bank was caught in the crisis, this bank is also moving on the same path. Deutsche Bank has undergone many changes and the leadership has also been changed, so as to improve its work. But the situation did not improve. Now the bank is on the way to collapse.