Exchange-traded funds (ETFs) are becoming increasingly important as a cost-effective option for investors, albeit one which comes with its own specific risks attached, as the Bundesbank explains. According to the current issue of the Monthly Report, the risks for the financial system as a whole stemming from ETFs are currently limited, however. 

Prof. Dr. Axel A. Weber, President of the Deutsche Bundesbank, at the Bundesbank Spring Conference on "International Risk Sharing and Global Imbalances"

Bundesbank President Jens Weidmann has spoken out in favour of eliminating the red tape involved in setting up a business. At a speech in Düsseldorf, Mr Weidmann pointed out that “reforms to make it easier for start-ups to enter the market would also enhance competition and spur innovative power.”

The Bundesbank is expecting economic growth in Germany to remain quite robust. According to the current issue of the Monthly Report, the underlying pace of economic activity is still high. The Bundesbank’s economists believe that private consumption will be the main driver of growth.