Climate change, and our response to it, will have a significant impact on economic and financial systems. The impacts will be far-reaching in breadth and in magnitude; subject to tipping points and irreversible changes; and are uncertain yet at the same time totally foreseeable. In particular, while we do not know now exactly what physical and transition risks will materialise, we do know for sure that we will face some combination of those risks. And, crucially, we also know that the size and balance of these future financial risks and economic costs will depend on the actions we take today. 

The July 2018 edition of the Bundesbank’s Monthly Report describes the ownership structure and the main drivers of yield movements in the market for Federal securities, and discusses the rebalancing of the Chinese economy as well as its international implications. It also includes an article on trends in the financing structure of German non-financial corporations as reflected in the corporate financial statement statistics.

The May 2019 edition of the Monthly Report comments on the economic situation in Germany in spring 2019.

Times of strong growth and low interest rates have seen vulnerabilities build up in the German financial system. In addition, the probability of an economic downturn has increased.