The German banking sector is currently stable overall, with sound capital and liquidity buffers – that’s good news, Bundesbank Executive Board member Michael Theurer stressed at the digital supervisory briefing, an event organised by the Bundesbank and BaFin.

However, the economic situation was being dampened not just by geopolitical tensions and macroeconomic uncertainties, but also by direct threats like an increased number of cyberattacks.

Together with Annika Sattler from the Bundesbank, Theurer and BaFin Chief Executive Director Nikolas Speer spoke about the risk situation, simplification and proportionality. Participants from the worlds of banking and supervision numbered more than 5,000 at times during the digital supervisory briefing, which was streamed live.

Risks in the corporate sector due to challenges at home and abroad

One major topic of the supervisory briefing was the National Supervisory Programme (NSP), a key tool used by supervisors to plan and prioritise their activities. Another concerned the simplification proposals put forward by the Bundesbank and BaFin to make supervision more efficient and transparent.

In the words of Michael Theurer, challenges included, for example, the transmission of weakness from the real economy to bank balance sheets and vulnerability to abrupt market price corrections. We are furthermore seeing risks in the corporate sector as a result of structural challenges at home and abroad, he noted. Credit risk remained a key area for supervisors, Theurer said. Nikolas Speer stressed the importance of remaining vigilant and noted that the valuation of loans had to be appropriate.

Leveraging digital tools to streamline prudential processes

Supervisors were leveraging digital tools to streamline and speed up their processes. These tools could help make inspections more efficient and reduce the burden of compliance for institutions, Michael Theurer explained. It was important to supervise the principle, and less the details, Nikolas Speer added.

Banks need to be resilient to sudden changes

Looking at the year 2026, Theurer stressed that, today more than ever, banks needed to be resilient to sudden changes. Speer observed that the environment continued to be challenging, which was why an intensive exchange with institutions remained essential. BaFin, he added, would step up its inspection activities.