Small and medium-sized banks and savings banks in Germany are robust despite economic challenges, geopolitical uncertainty and burdens in corporate and commercial real estate business. This is borne out by the results of the current stress test of “less significant institutions” (LSIs) presented today by Bafin Chief Executive Director Nikolas Speer and Bundesbank Executive Board member Michael Theurer.

The German economy is likely to grow only slightly in the third quarter of 2026, according to the current issue of the Bundesbank’s Monthly Report. It notes that temporary stress factors are putting the brakes on the economic recovery for now. “Growth in the German economy is likely to pick up again in the fourth quarter,” the economists write.

Bundesbank President Joachim Nagel and François Villeroy de Galhau, former Governor of the Banque de France, have been awarded the Great Franco-German Media Prize. At the award ceremony in Paris, their close cooperation in the service of European integration was honoured.

The external ECB Governing Council meeting took place on 9 and 10 September in Berlin. The agenda included monetary policy decisions and the release of new macroeconomic projections. The Governing Council decided to raise the key interest rates by 25 basis points. The Governing Council usually meets in Frankfurt am Main. This year, the Bundesbank hosted the Governing Council meeting in Germany’s capital city.