Germany: Financial Sector Assessment Program-Technical Note-Crisis Management and Financial Safety Nets
IMF Staff Country Reports, August 16, 2022
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- Germany: Financial Sector Assessment Program-Technical Note-Crisis Management and Financial Safety Nets
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Bibliographic details
- Published: August 16, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217944.002
Overview
- Much progress on resolution planning and preparedness has been achieved since the last FSAP in 2016.
- Germany’s resolution planning is well advanced, with resolution powers broadly in line with best practice and well-developed internal resolution processes.
- The large weight of Less Significant Institutions (LSIs) in Germany’s financial sector calls for further progress on planning for crisis management for smaller banks and the institutional protection schemes (IPSs) of which they are members.
Key findings
- Resolution planning and preparedness: well advanced since 2016.
- Legal and operational framework: resolution powers are broadly in line with best practice.
- Internal processes: well-developed internal resolution processes are in place.
- Sectoral concern: the large weight of LSIs necessitates further crisis-management planning for smaller banks and IPSs.
Policy implications and recommendations
- Further progress is needed on planning for crisis management for:
- Smaller banks (Less Significant Institutions, LSIs).
- Institutional protection schemes (IPSs) of which LSIs are members.
- Maintain and build on existing resolution powers and internal resolution processes to address risks arising from the high share of LSIs.
Content in this bundle
- Executive Summary