German financial system 'stable': Central bank head
The head of Germany's central bank moved to calm fears over the country's financial system today, insisting it could weather the panic that sent shares plunging after Lehman Brothers' collapse.
By Agencies |
FRANKFURT: The head of Germany's central bank moved to calm fears over the country's financial system today, insisting it could weather the panic that sent shares plunging after Lehman Brothers' collapse.
"The German financial system is stable and its resistance to adverse shocks has markedly improved in the past few years," Bundesbank President Axel Weber said, according to the text of a speech released by the bank.
"German banks have not indicated any liquidity problems." US investment giant Lehman Brothers' announcement yesterday that it was filing for bankruptcy "raises the uncertainties and risk aversion in the markets," he said, as German banks' shares suffered the fallout from the US crisis.
Commerzbank has seen its shares lose 30 percent of their value in two weeks.
Weber, who is also on the board of the European Central Bank, said it and other central banks were right to pour in billions of dollars to buoy up the financial system after Lehman's collapse.
"The German financial system is stable and its resistance to adverse shocks has markedly improved in the past few years," Bundesbank President Axel Weber said, according to the text of a speech released by the bank.
"German banks have not indicated any liquidity problems." US investment giant Lehman Brothers' announcement yesterday that it was filing for bankruptcy "raises the uncertainties and risk aversion in the markets," he said, as German banks' shares suffered the fallout from the US crisis.
Commerzbank has seen its shares lose 30 percent of their value in two weeks.
Weber, who is also on the board of the European Central Bank, said it and other central banks were right to pour in billions of dollars to buoy up the financial system after Lehman's collapse.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
