German chancellor says ‘no reason to be concerned’ for Deutsche Bank

BERLIN (AA) - German Chancellor Olaf Scholz on Friday said that there is no reason for concern about Deutsche Bank after its shares fell sharply over fears of a looming banking crisis.

“Deutsche Bank has fundamentally modernized its business model and reorganized. It is a very profitable bank, there's no reason to be concerned,” Scholz told reporters in Brussels, at the end of the EU leaders' summit.

He said during their meeting today, EU leaders discussed the recent developments in the global markets and the situation in the European countries.

“The European banking supervision and the finance system are robust and stable, European banks have robust capital resources, thanks to the work of the past years, and the efforts of the banks themselves,” Scholz stressed.

Deutsche Bank shares dropped nearly 13% on Friday after credit default swaps surged amid concerns over a possible global banking crisis.

Swiss lender Credit Suisse’s troubles and the bankruptcy of the US-based Silicon Valley Bank and Signature Bank raised concerns about the health of the global banking sector.