German credit institutions’ performance improved significantly in 2023, according to the current issue of the Bundesbank’s Monthly Report. At €48.7 billion, aggregate profit for the financial year before tax increased considerably, up by nearly 80% on the year. All categories of banks posted higher profits for the 2023 financial year than they had done in 2022. This development was driven in large part by the significant increase in net interest income resulting from the Eurosystem’s key interest rate hikes.

To date, European climate policy has not yet led to widespread relocations of energy-intensive production abroad by domestic firms, the Bundesbank concludes in its latest Monthly Report. In this, the Bundesbank’s economists examine the impact of the EU Emissions Trading System (EU ETS) on the foreign direct investment decisions taken by German manufacturing sector enterprises. The Bank’s experts conclude that favourable framework conditions that encourage innovation in low-emissions technologies are needed in order to prevent domestic production from being relocated in the future, too.

With effect from Monday, 2 September 2024, Dr Sabine Mauderer was appointed Vice-President of the Bundesbank. Furthermore, Lutz Lienenkämper and Michael Theurer joined the Bundesbank’s Executive Board. The responsibilities within the Executive Board have therefore been reallocated. The following reallocation of responsibilities comes into effect

“We’ve ridden out the big wave of inflation,” said Bundesbank President Joachim Nagel in an interview with the “Frankfurter Allgemeine Zeitung” (FAZ). The euro area is well on the way to hitting the inflation target of 2 % by the end of 2025, he added. Asked whether the ECB Governing Council will lower interest rates for a second time in September, Nagel said that it would depend on the data. He also spoke about the ECB’s forthcoming strategy review and the state of the German economy.