Most listed equities of enterprises domiciled in Germany are held by non-resident investors. This is shown by a recent analysis of the Bundesbank's statistics on securities investments, published in the September Monthly Report. The Bundesbank's economists believe that this can be seen as reflecting the growth in international ties.
In its latest Monthly Report, the Bundesbank argues in favour of putting Germany's state government revenue-sharing scheme on a more transparent and logical footing. To give the federal states greater responsibility for their own affairs, including against the backdrop of the new debt brake, the Bundesbank endorses the proposal to expand their tax autonomy.
In the Bundesbank’s assessment, the late school holidays this summer considerably strengthened economic performance in July. Holiday-related output losses in July were smaller than is usual at this time of year, thus overstating economic activity, according to the latest Monthly Report. Bundesbank economists therefore expect a countermovement for August.
Euro-area banks have taken up a total of €82.6 billion in the Eurosystem's first round of targeted longer-term refinancing operations (TLTROs). Bundesbank Executive Board member Joachim Nagel sees the lacklustre take-up as a sign of reduced dependence on Eurosystem funding.
The accession of Lithuania as the euro area’s 19th member state as from the beginning of 2015 will trigger a new voting procedure, in which the voting rights of the national central bank (NCB) governors at ECB Governing Council meetings will rotate. This is designed to ensure that decisions can still be taken efficiently in future, too.
Germany’s banks are gearing up for the future capital regime by strengthening their capital positions. That is the outcome of the latest Basel III monitoring exercise, according to which Germany’s largest banks would still need, in absolute terms, a further €2.5 billion in CET 1 capital in order to meet the new standards, which will be binding from 2019 onwards.
Economist Hélène Rey becomes the first recipient of the Carl Menger Prize for Economics. Bundesbank Executive Board member Andreas Dombret presented her with the award, which carries prize money of €20,000.
In a speech at a banking conference, the Deputy President of the Bundesbank, Claudia Buch, has called for further institutional changes to be made to the European banking union. Monetary policy decisions must not, she said, be influenced by banking supervisory considerations.
The ECB Governing Council resolved on 4 September to lower the main refinancing rate in the euro area to a historic low of 0.05%. Furthermore, the Eurosystem will launch an ABS purchase programme (ABSPP) and a covered bond purchase programme (CBPP3), the detailed modalities of which will not be announced until October, however.
Bundesbank Executive Board Member Andreas Dombret believes a waning appetite for reform is one of the biggest threats to financial stability. In an interview with Bloomberg TV, he said that anyone who believes everything will stay as it is is "making a big mistake".