Deutsche Bank moved to calm investors this evening, after it said it will have no problem making bond payments due in April.
The bank, whose shares fell 9.5 per cent to €13.82 during trading in Frankfurt today, said its payment capacity was approximately €1bn, which it said was "sufficient to pay additional tier one (AT1) coupons of approximately €350m (£271.6m) on 30 April 2016".
It added that its 2017 payment capacity is expected to hit €4.3bn before taking into account this year's results.
"This is driven in part by an expected positive impact of approximately €1.6bn from the completion of the sale of a 19.99 per cent stake in Hua Xia Bank and further HGB 340e/g reserves of approximately €1.9bn available to offset future losses."
It added that its final capacity to pay off AT1 coupons will depend on its operating results, and movements under other reserves.
Although Deutsche was hit hard by volatility in markets today, UK banks were also affected. Barclays finished the day 5.3 per cent lower, at 163.9p, while Lloyds fell 3.9 per cent to 59.4p and HSBC dropped 4.2 per cent to 438.4p. RBS fell 4.6 per cent to 230.7p.