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.

The Bundesbank published its annual Financial Stability Review on 23 November 2023. In the review the Bundesbank explains vulnerabilities in the German financial system and highlights risks to its stability.

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 Bundesbank published its annual Financial Stability Review on November 6, 2025. In the review the Bundesbank highlights relevant developments, explains vulnerabilities in the German financial system and points out 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.

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 macro-financial environment continues to be challenging in the second half of 2025. Geopolitical and trade policy tensions contributed internationally to the uncertainty surrounding the development of the global economy. 

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.