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.

The June 2011 monthly report contains: Outlook for the German economy – macroeconomic projections for 2011 and 2012; Sovereign yield spreads in the euro area; Extended MFI interest rate statistics: methodology and first results; Fundamental features of the German Bank Restructuring Act.

The June 2012 monthly report contains: Outlook for the German economy – macroeconomic projections for 2012 and 2013; The price of crude oil and its impact on economic activity in the industrial countries; The role of the “Basel interest rate shock” in the supervisory assessment of interest rate risks in the banking book.

The January 2011 monthly report contains: The banknote cycle and banknote recycling in Germany; Foreign demand for euro banknotes issued in Germany; Investor behaviour in theory and
practice; Requirements regarding the cyclical adjustment procedure under the new debt rule.

The European sovereign debt crisis remains the greatest threat to financial stability in Germany. The Bundesbank considers that a substantial worsening of the situation would have a significant adverse impact on German banks and insurers. In addition, low interest rates, high liquidity and potential exaggerations in the German real estate market could pose a future threat to financial stability.

The January 2012 monthly report contains: Long-term developments in corporate financing in Germany – evidence based on the financial accounts; The PHF: a survey of household wealth
and finances in Germany; The European single market in payments nearing completion.