The Financial Stability Committee approved a recommendation to the German government regarding the creation of national macroprudential instruments for the residential real estate market. They comprise additional intervention rights on the part of the supervisory authority in order to counteract credit-driven overheating on the residential real estate market and potential systemic crises in Germany.

The ECB’s expansionary monetary policies are not the only factor contributing to uncertainty concerning the financial stability situation and trends in Germany. Developments in Greece and the Russia-Ukraine conflict also play a significant role. This is explored in more depth in the Financial Stability Committee’s second report, issued on 30 June 2015.

The low interest rate environment is placing earnings pressure on many financial market players and poses a particular challenge to German life insurers. The Financial Stability Committee presented these and other topics in its first annual report to the German Bundestag on 18 June 2014.