The Bundesbank’s September 2023 Monthly Report takes a look at se-lected aspects of the current dependencies and medium-term challenges for Germany as a business location. It also discusses the question of whether there are heterogeneous effects in the implementation of monetary policy in the euro area. The report further includes an analysis of the reliability of models for short-term economic forecasting during recent crises. Another article describes Member States’ financial relationships with the EU budget and the Next Generation EU off-budget entity in 2022. And finally, the performance of German credit institutions in 2022 is discussed.

19. – 20.09.2023 | Frankfurt am Main

Some households contribute only a small amount of equity when buying property financed by a loan. If they then default on the loan, lenders may incur losses. Should the problem affect a large number of lenders, this could potentially jeopardise financial stability. Minimum requirements for the own funds households need to provide can limit losses that may arise. However, this would mean that some households can no longer obtain loans in the desired amount. A Bundesbank study shows that a large proportion of the households interested in buying which would be affected by this are then willing to buy a cheaper property or to save more in order to buy at a later date. The impact on homeownership is therefore likely to be smaller in the medium than in the short term.

Zweite Abstimmung mit der Kreditwirtschaft zur technischen Spezifikation