-4.7 C
Pennsylvania
Sunday, February 5, 2023

Commerzbank chief says he is not getting ready for catastrophe, however gentle recession

Must read

A “gentle recession” is on the playing cards, in line with Commerzbank CEO Manfred Knof.

Image Alliance | Image Alliance | Getty Pictures

Commerzbank CEO Manfred Knof says the financial institution has ready for an uplift in nonperforming loans, however the state of affairs is “positively not a catastrophe or default difficulty” as a “gentle recession” is probably going within the playing cards.

“We now have already made provisions however nonetheless in the mean time we do not see numerous points forward of us,” Knof informed CNBC’s Annette Weisbach on the European Banking Congress in Frankfurt Friday.

associated investing information

CNBC Pro
Financial institution of America downgrades Coinbase, says FTX collapse raises ‘contagion danger’ for crypto platform

Nonperforming loans are financial institution loans more likely to be repaid late or not in full and are also called “dangerous debt.”

“We’re wanting ahead to a really steady and good outcome subsequent yr,” Knof mentioned.

Different predictions for Europe’s financial outlook haven’t been as optimistic. The chief economist at Berenberg, Holger Schmieding, informed CNBC that client confidence had “plunged so badly that the recession will possible not be shallow.”

Commerzbank expects an increase in bad loans, CEO says, but no disaster

‘Resilient and robust’

The Commerzbank CEO additionally mentioned the actions of regulators, politicians and company banks have established “optimism” that the sector can handle the present financial surroundings. 

“We may have two troublesome years forward of us however we’re resilient and robust. [If] all of us work collectively we needs to be [able to] deal with the state of affairs,” he mentioned.

The chief of Deutsche Financial institution Christian Stitching was extra frank in his feedback about regulation in Germany and Europe extra extensively, saying he was involved that “the pendulum is about to swing too far” and will “structurally drawback” the trade amongst international rivals. 

We need to change course, otherwise we will be reliant on foreign banks, Deutsche Bank CEO says

“The present regulatory framework does little to strengthen European banks,” he mentioned, talking on the similar occasion Friday. “As a substitute of additional increasing and tightening, we must also take a look at the place it may need gone too far.”

He added that whereas Europe is presently a frontrunner in sustainable finance, the bloc “will quickly lose this management” if regulation “continues because it has.”

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article