Deutsche Bank AG is the riskiest financial institution in the world as a potential source of external shocks to the financial system, according to the International Monetary Fund. (Wall Street Journal)

In its annual review of the stability of the German financial sector, the IMF said that among globally important banks, Deutsche, which is highly interconnected with other financial institutions due to its investment and transaction banking units, “appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse”. (Financial Times)

The IMF concluded that Germany needs to urgently examine whether its bank resolution, i.e., liquidation, plans are operable, including a timely valuation of assets to be transferred, continued access to financial market infrastructures, and whether authorities can ensure control over a bank if resolution actions take a few days, if needed, by imposing a moratorium. (Zero Hedge)