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Does Deutsche Bank face the same liquidity risks as Credit Suisse? What effect will this have on the crypto market?

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© Reuters. Does Deutsche Bank face the same liquidity risks as Credit Suisse? What effect will this have on the crypto market?

German multinational bank Deutsche sent another shockwave through the traditional trading market on Friday, sending its share price down around 13%. However, the share price of Deutsche Bank (ETR: ) (ETR: DBK ) is now at 9.16. The collapse has spooked investors as the industry has seen several banks collapse in similar fashion recently.

Is Deutsche Bank cash flow strong? Analysts seem confused now that Deutsche Bank has been profitable for 10 consecutive quarters and has strong capital at risk. However, it can be said that the bank may continue to target the trend in the market.

At this stage, market participants should look for the liquidity statement of the bank in which they have invested. This will check if the bank can pay off all their debts when they run into trouble.

According to Deutsche (ETR: ) Bank’s latest disclosures, the liquidity coverage ratio for the company at the end of December 2022 was 135%. Statistics indicate that when the bank has sufficient liquid assets, it is more than the minimum requirement of 100%. A net cash outflow can be hidden if required. Meanwhile, that number reached 145% in 2018.

According to reports, Deutsche Bank’s liquidity coverage ratio for the US firm at the end of December 2022 was 141%. The latest LCR is yet to be published. However, compared to a Silicon Valley bank, Deutsche Bank’s funding sources are more diverse.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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