Commerzbank Unexpectedly Lowers Capital Level

The video discusses the growing operational risk faced by European banks, particularly focusing on Deutsche Bank. It highlights the implications of increased risk-weighted assets and the upcoming stress tests. The discussion also covers regulatory adjustments under the Basel framework and the evolving relationship between banks and regulators, emphasizing the need for stringent stress tests to avoid past failures.

What does the increase in operational risk RWA indicate about Deutsche Bank's capital holdings?

What are the potential implications of the stress tests for European banks?

How might the adjustments to the Basel III framework impact capital requirements for banks?

In what ways have past stress tests been criticized, and what changes are expected this time?

What does the situation in Italy reveal about the relationship between banks and sovereigns in Europe?