Deutsche Bank reduces participation in metallurgy

The largest German bank decided to reduce its participation in the metals and mining industry due to the increased risk associated with the industry.

“Our strategy is to reduce our loan portfolio, which currently stands at € 10 billion, due to the increased risk associated with this industry,” Deutsche Bank reports. It is noted that the problems are caused by falling commodity prices and cooling markets in developing countries. All this leads to a weakening of demand for steel.

The oil and gas segment, which is a significant consumer of steel products, in which the bank has a loan portfolio of 16 billion, was named as a high-risk zone. Here, too, the reason is the fall in oil prices.