During the reporting period, which ran from April 2015 to March 2016, the German financial system proved robust even in periods of stress. Uncertainties concerning Chinese growth prospects and surrounding Greece’s future in the euro area led to tensions on the financial markets. However, the Financial Stability Committee did not identify any destabilising crisis dynamics.

Because of the low interest rates, the primary risk to financial stability during the period under review was the risk of misjudgements by market participants as a result of skewed incentives. However, no indications of excessive risk-taking were identified. In this context, the Financial Stability Committee’s special focus was on systemic risks that could be addressed through expanded macroprudential tools.

Divergent monetary policy trends across various currency zones, along with political uncertainty due to the refugee crisis and composition of the EU, shaped the debate towards the end of the reporting period. Given these trends, the Financial Stability Committee emphasised the responsibility of market participants to further strengthen their resilience to risks. It is also important to make adjustments to the institutional framework so as to incentivise behaviour that is consistent with stability. In addition, the Financial Stability Committee noted that macroprudential policies should be transparent, as they represent far-reaching interventions in the economic system.