The German bank has been struggling to recover from the fallout from the Brexit vote and the subsequent fall in the value of the pound, as it struggles to keep pace with surging global demand.
But the German capital’s troubles are more complex than simply a fall in its market value.
The German banks have been forced to take a much tougher line on the banking sector, pushing them to loosen their policies in a bid to stave off a repeat of the 2008 financial crisis.
In a series of meetings this week, German officials have stressed the need for a more aggressive policy shift, with a focus on risk-taking and a more cautious approach to regulation.
German banks, which account for about half of the global financial sector, are grappling with a number of difficult issues.
First, the country is not at a crossroads yet on whether to adopt the euro.
The decision has to be taken at a European level.
But German officials also have to decide on what to do with the banks’ $3.4 trillion balance sheet.
While the German authorities have repeatedly said that they want to maintain the euro, many analysts and policymakers in the eurozone believe that the German economy would benefit if it took on more risk.
A key question is whether to increase the number of bailouts of troubled banks.
A German government official said on Tuesday that it would be a “good idea” to have the European Central Bank, which is already lending money to troubled banks, lend more to banks in the euro area.
“But at the moment, we can only do it on a case-by-case basis,” the official said.
In other words, the European central bank could provide funding if the banks are in financial trouble, but it would only be available for a period of six months, while the governments of countries in the bloc have to keep buying its bonds.
While some countries in Europe are concerned about the prospect of further ECB bailouts, others, including Germany, are wary of the risk of having a large share of their savings confiscated by a central bank.
The risk is compounded by the fact that the eurozone is struggling to keep up with the pace of global economic growth, and that it is also dealing with a financial crisis that has had the effect of squeezing wages for millions of ordinary Germans.
A recent survey by the Bundesbank showed that almost 60 percent of Germans would prefer to see the ECB’s funding increased, with the vast majority of respondents in favour of it being limited to the first year of the bailouts.
In the meantime, some German politicians have suggested the ECB may be allowed to help some eurozone countries through a bond buy-back program, in order to stimulate their economies.
Some economists say that a bond buying program is probably a more viable option than a bond swap.
In response, Germany’s government has already indicated it will not let the ECB help eurozone countries unless they make substantial sacrifices in return.
“The ECB is a central banker.
It can buy bonds, it can lend money,” said Frank Schulz, a former German finance minister who is now the head of the Center for European Reform.
“If it wanted to help countries, it should not have been making bailouts to them, but to countries like Greece and Italy.”