Germany : Financial System Stability Assessment.

Germany entered COVID-19 with strong public and private sector balance sheets, and large financial buffers. The financial sector has weathered well the shocks related to COVID-19 and the impact of the war has been limited so far. However, financial conditions have tightened recently and risks to the...

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Bibliographic Details
Corporate Author: International Monetary Fund. Monetary and Capital Markets Department
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2022.
Series:IMF Staff Country Reports; Country Report ; No. 2022/231
Subjects:
Online Access:Full text available on IMF
Description
Summary:Germany entered COVID-19 with strong public and private sector balance sheets, and large financial buffers. The financial sector has weathered well the shocks related to COVID-19 and the impact of the war has been limited so far. However, financial conditions have tightened recently and risks to the economy and the financial system have increased. The main risks relate to an escalation of the war that could be associated with a Russian gas shut off and higher commodity prices, a global resurgence of COVID-19 with extended supply chain disruptions, and de-anchoring of inflation expectations in the U.S. and advanced Europe. Structural vulnerabilities related to persistent low bank profitability and misalignments in the real estate sector prices indicated in the 2016 FSAP remain a concern.
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Physical Description:1 online resource (76 pages)
Format:Mode of access: Internet
ISSN:1934-7685
Access:Electronic access restricted to authorized BRAC University faculty, staff and students