Nagel: Bundesbank will continue to make its voice heard as an advocate for a culture of stability
“Stability is the Bundesbank’s mission and its core,” Bundesbank President Joachim Nagel emphasised in his inaugural speech at the change of office ceremony in Frankfurt am Main. “The German public expect, and rightly so, that the Bundesbank will make its voice heard as an advocate for a culture of stability. I can reassure them that it will continue to do so,” he said. At the same time, the Bundesbank should rise to the challenges that change brings and harness the opportunities it offers.
Federal President Steinmeier appoints Joachim Nagel President of the Deutsche Bundesbank
Federal President Frank-Walter Steinmeier has appointed Joachim Nagel President of the Deutsche Bundesbank. Mr Steinmeier presented the certificate of appointment to Mr Nagel, who holds a PhD in economics, at Schloss Bellevue on 7 January. The ceremony marking the change of office for the tenth President of the Bundesbank will take place on 11 January in Frankfurt and will be streamed live.
Wuermeling: Banks should increasingly take acceptable risks
Bundesbank Executive Board member Joachim Wuermeling says banks should take more acceptable risks to fund the transformation of the economy. “It doesn’t do the German banking system any favours if earnings are constantly being shifted to the non-banking sector,” he remarked in an interview with the Börsen-Zeitung, arguing that this would dry out the banking industry as a whole in the long run. He said that banks should not be afraid to increasingly take acceptable risks, but noted that supervisors will continue to expect banks to meet the same risk management requirements.
The German economy will experience a setback in the final quarter of 2021 and the first quarter of 2022 on account of the pandemic, but is set to pick up significant momentum again in the second quarter of next year. “The upswing has been slightly delayed,” said Bundesbank President Jens Weidmann at the presentation of his institution’s current projections. In addition, the Bank’s experts anticipate that the inflation rate will remain high at first, only gradually decreasing towards 2%.