Deutsche Bank warns of possible collapse of Europe’s financial system
Christian Sewing, who is the head of Deutsche Bank, said that low interest rates could cause the european financial system to collapse in the long term. For banks, they are a very heavy burden. Credit organizations suffer serious losses. This year they could amount to several hundred million euros. Scope Ratings conducted the study. Its results showed that over the past 5 years the losses of European banks exceeded 23 billion euros. The reason for the negative statistics was the policy of low rates. At the last meeting of the European Central Bank, it was decided to keep the rate at zero. And the deposit rate was decided to reduce to minus 0.5% from the current level of minus 0.4%. The ECB statement notes that there will be no rate hike as long as inflation remains well below 2%.