Bundesbank concerned by escalating stability risks


The Deutsche Bundesbank's 2012 financial stability review has raised fears that a combination of low interest rates, rising real estate prices and a large shadow banking sector pose a threat to financial stability, particularly against the backdrop of the sovereign debt crisis in Europe.

"At present, the financial system is exhibiting certain characteristics… which were partly responsible for generating vulnerabilities in the past and must therefore be viewed as risk factors in the medium term,"

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