Rough reception.

Deutsche Bank (DB) continued to slide Friday, taking shares in Germany's biggest lender to the lowest levels since the 2016 U.S. Presidential election as it launched a disappointing IPO of its asset management unit amid questions over the turnaround strategy of CEO John Cryan

Shares in DWS Group, the bank's asset management arm, started trading in Frankfurt today, adding around €0.10 in the opening hour on the Deutsche Boerse to change hands at €32.60 per share. Deutsche Bank sold around 22.25% of the unit, raising €6.5 billion, both figures falling shy of the original ambitions of 25% and €8 billion for the float.

������ @DWS_Deutschland is now officially #ListedInFrankfurt - #OpeningBell by @dws_Deutschland's CEO @NMoreau_JM & CFO Claire Peel

— Deutsche Börse Group (@DeutscheBoerse) March 23, 2018

Deutsche Bank, meanwhile, continues to fall at a faster pace than the DAX performance benchmark, which shares in the lender down a further 4.33% today at €11.15, a move that takes its one-month decline to around 17% and plunks the stock at the lowest level since Nov. 8, 2016.

The Stoxx Europe 600 Banks index, the region's sector benchmark, slipped 1.65% to an 11-month low of 171.57 points Friday led by another session of declines for both Deutsche Bank Credit Suisse Group (CS)  which has fallen a further 1.5% today to Sfr16.03 after CEO Tidjane Thiam reportedly described trading in the first three months of the year as "very confused" during an investor event in London earlier this week. 

Investors in European banking stocks are the most bearish since July 2016 when comparing trading trends with analyst estimates driven by trade war Angst and rising USD funding costs (Libor-OIS spread)! (Chart via BBG)

— Holger Zschaepitz (@Schuldensuehner) March 23, 2018

Thiam's comments also come amid a troubling rise in the so-called three-month dollar Libor-OIS rate, a key gauge of risk in interbank lending, which hit a nine-year high yesterday as markets continue to re-price money markets as the U.S. Federal Reserve moves on interest rates and central banks around the world contemplate reciprocal policy tightening.

I feel a bit nervous now... #Libor #USD #dollar #OIS

— Michal Stupavsky (@MichalStupavsky) March 23, 2018

Yesterday, European Central Bank supervisor Daniele Nouy, who heads the central bank's oversight of European lenders, told a conference in Frankfurt that the Bank will continue to be "tough and intrusive" towards its charges and warned that it will use "all the tools that we have developed in recent years".

"We will also take a close look at remuneration schemes to see whether they are conducive to the sound and prudent management of banks," Nouy added.

European banks are sitting on pile of bad debts worth more than $1 trillion and, according to, are writing them off at a far slower pace than their American counterparts.

"As Europe and its economy regain strength, Europe must seize the momentum and accelerate the reduction of (bad loans)," Commission Vice President Valdis Dombrovskis said last week. "This is essential to further reduce risks in the European banking sector and strengthen its resilience."