Claudia Buch: The Deutsche Bundesbank's 2021 Financial Stability Review

Statement by Prof Claudia Buch, Vice-President of the Deutsche Bundesbank, at the presentation of the Deutsche Bundesbank's 2021 Financial Stability Review, Frankfurt am Main, 25 November 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
30 November 2021
by Claudia Buch
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  |  12 pages

Ladies and gentlemen,

I would like to welcome you to the presentation of the Deutsche Bundesbank's Financial Stability Review. The report contains positive takeaways, but also clearly highlights where action is needed.

The financial system has functioned well during the pandemic. The extensive government measures have shielded the financial sector from losses. 

But vulnerabilities are continuing to build up – to adverse macroeconomic developments and specifically in the housing market. 

Preventive action is needed to increase resilience in the financial system. The countercyclical capital buffer should be built up in good time and risks in the residential real estate market must be contained.