Bundesbank Financial Stability Review 2024

The German financial system has overall coped well with the phase of rising interest rates. Despite the ECB's interest rate cuts since June 2024, substantial vulnerabilities still persist. These vulnerabilities result, inter alia, from the difficult economic environment, the price developments in the commercial real estate market, and geopolitical tensions. Furthermore, new structural developments are emerging in the financial system, such as the increasing relevance of non-bank financial intermediaries.

What does all this mean for the stability of the German financial system? Is it resilient enough to deal with the challenges and fulfill its key macroeconomic role?