The Bundesbank published its annual Financial Stability Review on 21 November 2024. In the review the Bundesbank explains vulnerabilities in the German financial system and highlights risks to its stability.

The key conclusions are:

• The German financial system weathered the period of exceptionally strong growth in interest rates well overall.
• The macro-financial environment gradually improved over the course of last year, but remains challenging in light of the economic environment and heightened geopolitical tensions, in particular.
• The resilience of the banking system is adequate thanks to high capital reserves. The package of macroprudential measures is still appropriate.