Bundesbank Vice-President Claudia Buch has warned that an increase in insolvencies could jeopardise the stability of the financial system. “Banks have adequate buffers. Yet the banks and the public sector should be prepared for more negative developments and for an increase in the incidence of insolvency,” she said in an interview with the Frankfurter Allgemeine Sonntagszeitung newspaper.
Virtual Conference: "Future of Payments in Europe"
The virtual conference “Future of Payments in Europe” discussed different perspectives on the latest developments in European payments. Speakers included Bundesbank President Jens Weidmann, Executive Board member Burkhard Balz and Federal Minister of Finance Olaf Scholz.
German economic recovery interrupted for the time being
In its Monthly Report, the Bundesbank’s economists write that the German economy recovered rapidly in the third quarter from its slump in the wake of the coronavirus pandemic. However, they are not expecting the catch-up momentum to continue into the final quarter of 2020 due to the resurgence of the pandemic. On the other hand, they do not expect economic output to slump to a similarly subdued level as in the second quarter, either.
The Bundesbank invited civil society organisations to a virtual event in order to listen to their views on issues relating to the Eurosystem’s monetary policy strategy. Bundesbank President Jens Weidmann thanked the participants for their contributions and announced that he would raise the insights gained in the ECB Governing Council’s deliberations.