Deutsche Bundesbank
Weidmann says ECB governing council must give up SSM oversight
In order to avoid a conflict of interest between monetary and financial supervisory policy, Bundesbank president says either a treaty change is needed, or a new institution separate from the ECB
Bundesbank’s Dombret defends Germany’s current account surplus
Andreas Dombret says the strength of German households, businesses and public sector is a stabilising factor for the eurozone as a whole; calls for acceptance of the structural differences between economies
Using assets as collateral increases volatility of returns, Buba paper finds
Bundesbank discussion paper uses model comprising agents differing in their level of risk aversion; negative economic shocks substantially alter wealth distribution between the two
Bundesbank warns on ‘moral hazard' from low interest rate environment
Bundesbank's latest annual financial stability report fears insurance companies and banks are losing out in the low interest rate environment; deputy says ‘primary law' must change for SRM to work
Bundesbank research seeks to disentangle recession and depression
Discussion paper isolates unique features of depressions and booms to separate them out from recessions and expansions; results suggest recent ‘Great Recession’ was not a depression
Lautenschläger enunciates Buba's macro-pru approach
Focus on individual banks must be complemented by efforts to stem 'pro-cyclical' tendencies of the financial system as a whole, says Bundesbank deputy
German researchers present indicator of interbank market stress
Bundesbank discussion paper says banks’ bidding behaviour in Eurosystem’s weekly refinancing operations reflect conditions in the interbank market
Bundesbank's Lautenschläger raises leverage ratio concerns
Introducing the leverage ratio as the primary regulatory requirement would mean taking two steps back to the risk-insensitivity of Basel I and even beyond, Bundesbank deputy president argues
Bundesbank warns over surge in German property prices
House prices in the country's biggest cities are up more than a quarter since 2010, as investors search for yield amid record low interest rates; lack of supply also plays a role, says new study
Buba paper: Banks with volatile loan demand load up on wholesale funds
Bundesbank discussion paper argues ‘loan uncertainty' not only result but determinant of wholesale funding, implying regulatory cap on wholesale funding increases exposure to ‘asset-side shocks'
Bundesbank paper presents redesigned DSGE model to tackle unconventional policies
Researchers develop DSGE model using two types of banks, repos and haircuts to yield a better understanding of unconventional monetary policy
Bundesbank's Lautenschläger welcomes SSM
Sabine Lautenschläger says she is convinced of the advantages of Europe's single supervisory mechanism, but warns the comprehensive balance sheet assessment will pose challenges
Bundesbank economists propose composite FSI with real economy predictive power
Composite financial stress indicator is better at predicting developments in the real eurozone economy than volatility indexes that are currently commonly used
Weidmann slams Europe's stability pact relaxation
Exceptions made for four members of the eurozone earlier this year were inappropriate, Bundesbank president says; making the rules more binding is the only way to stronger monetary union
German voters want to keep the euro - but not to save it, poll finds
Two-thirds do not believe the next chancellor has mandate to support eurozone countries financially after the September 22 elections; a third supports break up of eurozone and return to deutschmark
German banks move to lower-risk sovereign bonds
Deutsche Bundesbank discussion paper investigates banks exposures to sovereign debt and finds they are increasingly investing in bonds from larger countries with lower inflation
Bundesbank’s Dombret urges co-ordination over shadow banking
Executive board member says shadow banking activities are 'not evil' but do produce systemic risks; highlights need to track banks’ exposures to shadow entities and manage ownership links
Buba's Dombret backs EU recovery and resolution plans
Bundesbank board member says new European directive on resolving big banks will be crucial in solving ‘too-big-to-fail', though he has reservations about public participation in the resolution fund
Bundesbank paper says EU convergence is a myth
Researchers identify a split between old and new, western and eastern member states; incomes are converging between smaller groups of countries rather than the EU collective
Bundesbank paper says media exposure shapes inflation expectations
Discussion paper examines how and why inflation expectations differ between the German population; where people go for news is an important factor
Europe could learn from Germany’s macro-prudential approach
Germany’s approach to macro-prudential oversight could offer insights into how to democratise ‘hard’ policy tools and enshrine independence at a time when more power is being transferred to the ECB
German experience offers macro-prudential lessons for Europe, says Buba's Dombret
Germany's approach to macro-prudential oversight could offer insights into how to democratise ‘hard' policy tools and define the role of national central banks, says the Bundesbank's Andreas Dombret
German paper proposes new method for identifying time-invariant regressors
Discussion paper says existing techniques used to identify time-invariant regressors in dynamic panel data models are ‘quite biased’ and proposes a two-stage alternative
Bundesbank paper confirms O-ring theory effect for FDI
Paper written by two economists at the University of Munich finds that the position of a country's industry on the value chain is just as important in determining FDI as is the country's productivity