The German economy is likely to grow slightly in the third quarter of 2025, the Bundesbank’s Monthly Report states. Despite continued unfavourable investment conditions for firms and additional burdens caused by the new US tariffs, there were no signs of any major setbacks for industry. It got off to a surprisingly strong start in the third quarter. A recovery in construction output is yet to materialise, however. Private consumption is likely to increase slightly, if at all, as the labour market is not providing any strong stimulus at present. The inflation rate rose to 2.1 % in August.

on the topic of Statistics of the banks' profit and loss accounts

Regulation of banks is essential to the stability of our financial system. But how appropriate is the time and effort for smaller, regional banks? In a guest article in the Frankfurter Allgemeine Zeitung, Bundesbank Executive Board member Michael Theurer and BaFin President Mark Branson highlight the challenges facing small banks in Europe and call for a novel approach to reducing EU-wide regulatory requirements for small banks without jeopardising safety standards.

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