German banks vulnerable to housing bubble; should build buffers: Bundesbank

german banks vulnerable to housing bubble should build buffers bundesbank

Sumary of German banks vulnerable to housing bubble; should build buffers: Bundesbank:

  • Article content FRANKFURT — Germany’s banks are increasingly vulnerable to an overvalued property market and finance authorities should force lenders to build up capital buffers, the Bundesbank said on Thursday in a regular stability report.
  • Article content “The countercyclical capital buffer should be built up again early on,” Bundesbank Vice President Claudia Buch said in a statement.
  • The buffer, now at 0, was set 0.25% of banks’ total risk exposure before the pandemic but current credit levels suggest that an even higher level may be needed, the Bundesbank added.
  • This buffer does not explicitly take into account the booming residential property market, which requires careful monitoring and potential action by regulators, the Bundesbank said.

Want to know more click here go to source.

From -

Close
Generic selectors
Exact matches only
Search in title
Search in content

Site Language


By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close