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 German Financial Stability Committee (FSC) has presented its ninth report to the German Bundestag. In the reporting period from 1 April 2021 to 31 March 2022, the main topics explored by the FSC were the effects of the coronavirus pandemic, the risks emanating from the real estate market and the activation of macroprudential measures to counteract the increased vulnerabilities in the German …

The Financial Stability Committee (FSC) presents the German Bundestag its tenth report, covering the reporting period from 1 April 2022 to 31 March 2023. The FSC dealt with developments in the risk situation and resilience of the German financial system as well as the adequacy of the package of macroprudential measures. Amongst other things, the FSC looked at risks that financial stability might …

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.

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 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.

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.

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.

In the second half of 2023 the German financial system proved stable despite the existence of high vulnerabilities. However, uncertainty remains high in view of interest rate rises, a clouded growth outlook, increased cyber risks and geopolitical conflicts.

The Federal Ministry of Finance has issued a new statutory instrument on the collection of financial stability data (FinStabDEV), which entered into force on 3 February 2021. It gives the Deutsche Bundesbank the power to collect relevant data on residential real estate lending on a regular basis. The additional data will strengthen macroprudential supervision and make it possible to deploy …