DW: German banking giant Deutsche Bank’s US operations failed the Fed’s second round of stress tests, the qualitative test. Of the big banks tested, 32 out of the 35 passed the test.
The US Federal Reserve said on Thursday that Deutsche Bank US operations had failed the central bank’s annual stress test due to “widespread and critical deficiencies” in its risk management.
The Fed’s yearly stress tests are meant to determine if big banks are strong enough to sustain a major economic downturn. Thursday’s qualitative test looked at capital planning, including share buybacks and dividend payments.
While the bank passed an earlier set of tests, it’s not the first time that the German banking giant has been unable to pass a US annual stress test, having failed similar tests in 2015 and 2016.
