In accordance with the provisions of the Solvency Regulation, two different approaches are used to quantify credit and counterparty credit risk, the Credit Risk Standardised Approach and the Internal Ratings-Based Approach.

The ongoing monitoring of institutions also includes conducting on-site inspections. These give the Bundesbank deeper insights into institutions’ risk structures and the procedures they use to control risk. The Bundesbank’s supervisors investigate whether the internal risk measurement methods which institutions use to calculate their capital requirements can be approved.

In operational terms, ongoing supervision involves evaluating documentation, reports, annual financial statements and audit as well as inspection reports, requesting of further information and, on the basis of the data collected, assessing the supervised institutions’ current and potential risks. The workload also includes conducting routine and, in consultation with BaFin, ad hoc supervisory meetings with respective institutions.

Bundesbankvorstandmitglied Sabine Mauderer spricht im Interview mit der Frankfurter Allgemeine Sonntagszeitung über den Finanzstandort Deutschland und den Strukturwandel.

The system of indicators gives a comprehensive overview of the situation on the property marktet, which is characterised by a clear rise in prices at a time of low interest rates.