Will or not it’s harmful for German banks? | EUROtoday

NThe new turbulence within the US regional banking market is reaching the German banks which have US actual property loans on their books. While the beforehand largely unknown monetary establishments Silicon Valley Bank, Signature Bank and the asset supervisor First Republic achieved notoriety and collapsed virtually in a single day within the spring of 2023, it’s now the New York Community Bank that has buyers all around the world holding their breath . The New York Community Bank took over a big a part of the Signature Bank, and its stability sheet complete grew to greater than 100 billion {dollars} – as huge as Nord LB or the three largest financial savings banks in Hamburg, Cologne and Munich mixed.

Bank bonds at the moment are simply “junk”

The financial institution is now fighting dangers in its mortgage portfolio. The institute needed to report a loss within the fourth quarter of 2023 after an vital workplace property mortgage went dangerous. The financial institution put aside greater than half a billion {dollars} in provisions to cowl losses on workplace property loans totaling $3.4 billion. Rating companies downgraded the financial institution's bonds to junk bonds.