Germany:Financial Sector Assessment Program-Technical Note-Stress Testing, Interconnectedness, and Risk Analysis

Financial Sector Assessment Program-Technical Note-Stress Testing, Interconnectedness, and Risk Analysis

Volume/Issue: Volume 2022 Issue 272

Publication date: August 2022

ISBN: 9798400218019

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Finance , Money and Monetary Policy , International - Economics , hurdle rate , FSAP solvency , swap line , building and loan association , cash flow , ECB support , Commercial banks , Cooperative banks , Liquidity requirements , Stress testing , Liquidity , Global

Also of interest

Republic of Congo : 2001 Article IV

Spain

Malawi

Peru

Summary

The financial sector weathered COVID relatively well on the back of high pre-crisis capital and liquidity buffers, strong public and private sector balance sheets, and unprecedented public and ECB support. Immediate risks to Germany’s financial stability of Russia’s invasion of Ukraine appear to be manageable due to the banks’ limited direct exposures to Russia. However, risks associated with the economic fallout could impact some individual financial institutions, non-performing loans, and house prices. Real GDP growth was projected to regain momentum from mid-2022 onwards, but the war could hinder the recovery through supply constraints, higher-than-expected above-target inflation (with higher energy prices and supply constraints), a tightening of financial conditions, and shifts in investors’ confidence.