Buch keen for macro-prudential tools despite no guarantee of use in ‘near future’

Bundesbank’s deputy president: nip unwelcome developments ‘in the bud’


The German authorities need to be capable of "nipping any unwelcome developments" in the real estate markets "in the bud", Claudia Buch, deputy president of the Deutsche Bundesbank, said today (November 25).

In June, the German Financial Stability Committee – comprising representatives from the Ministry of Finance, Federal Supervisory Authority and central bank – recommended the government put in place the "legal foundations" for limits on loan-to-value ratios and debt-service-to-income ratios.

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