University of Minnesota - UMN Executive Leadership Insights
Germany
Report

Germany

Financial Sector Assessment Program

International Monetary Fund
IMF, 2016
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Editorial Rating

7

Recommendation

With two global systemically important financial institutions – Deutsche Bank AG and Allianz SE – and one of the world’s largest central counterparties – Eurex Clearing AG – Germany’s financial sector is a bulwark in the euro area and the world. Major financial reforms are central to the country’s ability to withstand market ructions. Yet as the International Monetary Fund elucidates in this detailed report, risks remain in the form of potential frictions that may arise from a new supervisory infrastructure as well as from low interest rates’ drag on profitability. getAbstract recommends the IMF’s erudite piece to financial professionals, economists and investors.

Summary

Germany’s macroeconomic picture is auspicious; strong economic growth manifests in robust labor markets and domestic demand. The private sector is healthy, as are property prices. Banks are the largest players in a domestically focused financial system; their relatively greater dependence on deposits for funding enables German banks to withstand shocks. Most banks hold adequate capital, and stress tests reveal sufficient liquidity.

Those positive developments notwithstanding, Germany could face external threats from slowdowns in developed countries...

About the Author

The International Monetary Fund advises member nations on policy issues and works to promote economic stability and well-being.

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