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 March 2014 edition of the Monthly Report describes the shadow banking system in the euro area and its monetary policy implications. In addition, the German balance of payments in 2013 is reconsidered and it comments on the vulnerability to crises of the manufacturing enterprises in Germany.