The time series for the indicators used to set the CCyB have been updated. The time series are now available for Q1 2020.

The Financial Stability Committee presented its seventh report to the German Bundestag today. The report indicates that during the period from 1 April 2019 to 31 March 2020, the Financial Stability Committee was primarily concerned with the risk of underestimating credit risks, the low interest rate environment and property markets.

The ESRB addresses its recommendations to national macroprudential supervisory authorities. In Germany, this is the function of the Financial Stability Committee. Accordingly, the Financial Stability Committee will participate in identifying, and sharing information related to, recommended fiscal policy actions in connection with Covid-19.

BaFin reduced the countercyclical capital buffer for German banks in light of the uncertain impact of the Covid-19 pandemic. The Financial Stability Committee endorses the lowering of the countercyclical capital buffer in March 2020.

In its sixth report of 20 May 2019, the Financial Stability Committee focused on cyber risks and Brexit. It also addressed the countercyclical capital buffer for banks.

At its meeting on 27 May 2019, the Financial Stability Committee recommended that the Federal Financial Supervisory Authority (BaFin) activate the domestic countercyclical capital buffer (CCyB) starting in the third quarter of 2019 and increase it from zero to 0.25 per cent within 12 months.

The Financial Stability Committee considers the German system to be stable, despite uncertainties such as Brexit and the possibility of an abrupt rise in interest rates. The Financial Stability Committee also addressed developments related to crypto-assets and the regulatory treatment of government bonds.

In its fourth annual report to the German Bundestag, the Financial Stability Committee addressed the divergence between US and EU monetary policy and the impact of cyberattacks on the German financial system.

The third Financial Stability Committee report concerned itself with more than just domestic developments. Corrections on the Chinese markets and political uncertainty triggered by the refugee crisis and Brexit are also having an impact on the German financial system.

Next to assessing the current risk situation in the German financial system, the Financial Stability Committee also discussed the introduction of the countercyclical capital buffer as a new macroprudential instrument. It noted that the sustained low interest rates in particular could remain the starting point for a variety of potential negative developments. This continues to require careful …