Activities

Internally the Bundesbank takes an interdisciplinary approach to carrying out its activities in the area of financial stability. Representatives of the Banking and Financial Supervision, International Relations, Markets, Economics and Payment and Securities Settlement Systems departments work closely together and collate their analyses, data and experience to gauge an overall picture of the stability situation of the German financial system. The results of these ongoing analyses are published once a year in the Financial Stability Review.

In addition to the ongoing analysis of the stability situation, research projects, generally conducted by the Bundesbank's Research Centre, refine analysis methods, such as stress tests, and examine special aspects in more detail. The results of the research pertaining to financial stability are published in the Discussion Papers.

The banking and financial supervision conducted by the Bundesbank makes a significant contribution to safeguarding the stability of the financial system. Owing to the role that it plays in supervision and the regulatory framework of the banking system, the Bundesbank also shares the responsibility for continually adjusting regulations to new developments in the banking sector. As a micro-prudential task, its operational supervision activities are aimed at ensuring the stability and functioning of the financial sector, which is especially sensitive to fluctuations in confidence, thereby ensuring systematic creditor protection. In addition, the data and findings gained from operational supervision form an indispensable basis for the macro-prudential analysis of stability. The Bundesbank works closely together with other national regulatory authorities and regularly discusses issues surrounding the stability of the German financial system with them in the Forum for Financial Market Supervision.

In a highly integrated international financial system, financial stability cannot be achieved if nations act alone. The Bundesbank takes part in international cooperation in which both the stability of the international financial system is constantly analysed and the international regulatory framework is enhanced and improved.

Payment and securities settlement systems that run smoothly contribute directly to a stable financial system. The Bundesbank ensures a stable financial infrastructure not only by means of its oversight activities but also by running its own efficient systems. By participating in national and international committees, the Bundesbank ensures that structures, performance features as well as further developments in the area of payments and securities settlement meet the requirements for security and efficiency

In addition, the Bundesbank has been compiling Financial Soundness Indicators since 2006 as part of a pilot project of the International Monetary Fund. In the long term, this project should ensure the availability of internationally comparable data on the stability of financial systems for a large number of countries.

Forum for Financial Market Supervision

The German Forum for Financial Market Supervision was established in December 2000 with the aim of coordinating the supervision of enterprises operating in the financial markets and enhancing existing concepts of supervision, in particular against the backdrop of current market developments - such as the formation of conglomerates or the introduction of bancassurance concepts. It is also responsible for analysing the stability of the financial system and developing recommendations on how to act in potential crisis situations.

Members:

Deutsche Bundesbank, Federal Financial Supervisory Authority and Federal Ministry of Finance.