Claudia Buch: Macroprudential policy in Europe - the German Countercyclical Capital Buffer (CCyB)

Panel statement by Prof Claudia Buch, Vice-President of the Deutsche Bundesbank, at the Seminar "Financial stability and central banks", organized by the Bank of Mexico, Mexico City, 1 November 2019.

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

The global economy is at a crossroads: trade tensions and geopolitical conflicts are leaving their mark in global trade and investment, growth forecasts are being revised downward, and uncertainties abound. Whether and to what extent risks to the growth outlook will materialize is unclear, and there is uncertainty about the longer-term growth potential.

The global financial system is more resilient to these risks and uncertainties because the banking system is better capitalized now than in the period prior to the global financial crisis. However, the global economy remains highly leveraged, risks may have migrated to the non-bank financial system, and vulnerabilities might become exposed unexpectedly.

Central banks are attentive observers of these trends, as the conduct of monetary policy depends on a stable financial system. Hence, I very much welcome the initiative of the Bank of México in organizing this seminar on financial stability and central banks. Given the close interlinkages in the global economy - both real and financial - it is important to learn from each other and to share experiences.