The global Covid-19 pandemic led to the worst economic downturn in Germany in decades during the first half of 2020.

The Bundesbank published its annual Financial Stability Review on 25 November 2021. The review documents relevant developments as well as vulnerabilities in the German financial system and highlights risks to its stability.

The Bundesbank published its annual Financial Stability Review on 24 November 2022. In the review the Bundesbank explains vulnerabilities in the German financial system and highlights risks to its stability.

Due to the uncertain impact of the COVID-19 pandemic, BaFin lowered the buffer from 0.25% to 0% as of April 2020, where it has remained ever since. In light of the COVID-19 pandemic, the Financial Stability Committee deems a countercyclical capital buffer (CCyB) of 0% until end-2021 as appropriate.

Germany’s financial supervisory authority is carefully and continuously monitoring the impact of the Covid-19 pandemic on the financial sector. BaFin has summarised what actions BaFin, the European Central Bank and the European supervisory authorities are taking in response to Covid-19 on the BaFin website.

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 …

The semi-annual Financial Stability Review finds that financial stability risks from the pandemic have lessened in the near term, but vulnerabilities are building up ahead.

The Financial Stability Committee (Ausschuss für Finanzstabilität) is presenting its eighth report on financial stability in Germany to the German Bundestag. Its work has focused on the impact of the coronavirus pandemic on the German financial system. Amongst other topics, the Committee has also been looking at risks emanating from the real estate market, Brexit, central counterparties (CCPs), …

The European Systemic Risk Board (ESRB) has published a second report on macroprudential policy issues arising from the low interest rate environment in the financial system of the European Union (EU). Looking beyond recent cyclical developments, the coronavirus (COVID-19) shock may have increased the likelihood and persistence of a “low for long” scenario.

ESRB has published five warnings and two recommendations on medium-term residential real estate vulnerabilities and the assessment of compliance with recommendations issued in 2019.