Deutsche Bundesbank

Arbeiter mit Werkzeug

Economic outlook deteriorates

According to the Bundesbank’s assessment in its August Monthly Report, the outlook for the German economy has deteriorated, though its underlying tendency remains positive. This deterioration is, not least, a result of the geopolitical tensions caused by the Ukraine conflict, which are depressing business sentiment.

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Dr Andreas Dombret © Salzburg Global Seminar

"A healthy banking culture will help to prevent new crises"

In an interview with Wiener Zeitung, Bundesbank board member Andreas Dombret has warned against placing unrealistic expectations on the European bank regulators. He emphasised that the best way of preventing future crises was to create a healthy and sound banking culture, quoting the Roman philosopher Seneca: "Shame may restrain what the law does not prohibit."

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Dr. Jens Weidmann

"France must set a good example"

In an interview with the French daily newspaper Le Monde, Bundesbank President Jens Weidmann called on France to capitalise on its leading role in Europe and set a good example in budgetary matters. It is important for a reinvigorated France to play its part as one half of the Franco-German engine of Europe, said Weidmann.

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Foto zeigt Kreditwesengesetz mit Stempel

Southern Europeans find it harder to get loans

A new Bundesbank study finds that it is significantly more difficult for bank customers to take out loans in the southern euro-area countries than in the euro-area core. The study shows that young people, the poorly qualified, divorced, self-employed or unemployed, and large households, in particular, have problems accessing loans in southern Europe.

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Skyline einer Stadt

Credit institutions under the microscope: towards the banking union

The European Single Supervisory Mechanism will commence its work at the beginning of November. Prior to this, banks are being put to the acid test in a comprehensive health check. During this “comprehensive assessment”, credit institutions have to prove the soundness of their balance sheets as well as their resilience in the face of deteriorating business conditions.

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Dr Jens Weidmann

President Weidmann puts the Bundesbank's position in the wage debate into perspective

"We do not interfere in wage negotiations." With these words, Bundesbank President Jens Weidmann responded to media reports to the effect that the Bundesbank had called on German wage-bargaining partners to conclude higher wage agreements. In an interview with the Frankfurter Allgemeine Zeitung, Mr Weidmann emphasised the importance of wage agreements for price stability.

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People and monitors

Swiss franc and US dollar are "safe haven" currencies

According to Bundesbank findings, exchange rates react in different ways to financial market crises. While no crisis-specific behaviour can be found for the euro, the Swiss franc, US dollar and yen clearly react to heightened tensions on the financial markets. In its July Monthly Report, the Bundesbank shows that exchange rate reactions have various causes.

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Photo shows Dr Jens Weidmann

Weidmann calls for an end to preferential treatment of sovereign debt

Jens Weidmann, President of the Bundesbank, has spoken out in favour of ending the preferential regulatory treatment for government bonds. Speaking to members of the German-British Chamber of Industry and Commerce in London, Mr Weidmann said that an adequate risk-weighting of sovereign bonds in banks’ balance sheets would make banks more resilient. He also said that the large exposures regime that currently applies to loans should in future be applied to sovereign debt as well. Mr Weidmann remarked that sovereign insolvencies needed to be possible without jeopardising the financial system as a whole.

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