Germany: Financial System Stability Assessment
IMF Staff Country Reports, July 20, 2022
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- Germany: Financial System Stability Assessment
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Bibliographic details
- Published: July 20, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216886.002
Summary and key findings
- The financial sector has weathered the impact of the pandemic and the war in Ukraine relatively well so far, but risks remain elevated.
- The Financial System Assessment Program (FSAP) solvency stress tests show that the significant institutions and less significant institutions are overall resilient to an adverse scenario.
- Consistent with the authorities’ findings, the FSAP found small vulnerabilities from climate transition risks to the banking system.
- Good progress had been made in strengthening the microprudential frameworks for banking and insurance since the 2016 FSAP.
Main risks to financial stability
- Global resurgence of coronavirus disease 2019 with extended supply chain disruptions.
- Scarcity of gas and oil.
- De-anchoring of inflation expectations in the United States and advanced Europe.
Macroprudential and policy implications
- Macroprudential policy is being tightened.
- Rising cyclical vulnerabilities will require additional action.
Deposit protection and institutional arrangements
- The system of Deposit Guarantee Schemes/Institutional Protection Schemes needs reform.
- Reform should be informed by a review of the distortions resulting from depositors’ high level of protection guaranteed under the current regime.
Source: Germany: Financial System Stability Assessment (IMF Staff Country Report).
Content in this bundle
- Germany: Financial System Stability Assessment; IMF Country Report No. 22/231; June 27, 2022