The Bundesbank's supervisors see the German banking industry in robust shape despite the corona pandemic.

Joachim Wuermeling, who is responsible for banking supervision on the federal board, said at the Bundesbank symposium “Banking supervision in dialogue”, which was organized digitally on Wednesday, that the pandemic-related value adjustments and loan defaults are currently significantly lower than initially feared.

At the end of March, only around 0.6 percent of the loan receivables were still considered pandemic-related.

At this point in time, the rate of non-performing loans was a good 1.2 percent and has therefore hardly increased since the beginning of the Corona crisis.

Markus Frühauf

Editor in business.

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Wuermeling referred to the value adjustments planned by the big banks for this year of 6 billion euros, of which only a few hundred million euros had been set up as risk provisioning in the first half of the year.

According to his information, the excess capital in the German banking system amounted to 150.6 billion euros at the end of March.

In the EU-wide stress test, the 16 participating institutes also met the capital requirements in the simulated severe economic crisis.

Banks need to check toolboxes

Nevertheless, Wuermeling turned his attention to the future challenges that he sees in transformation financing. By this he understands the structural change in the real economy after the Corona crisis, which is characterized by digitization and the transition to a low-carbon economy. Wuermeling does not see the German banks as well positioned for this. They would have to examine their existing financing instruments to see whether and how they fit into innovation models, and develop them further if necessary.

Bundesbank President Jens Weidmann had previously stated that the digital euro was not intended as a replacement for cash, but as an additional offer. However, the risks for the banking system would have to be contained before the introduction. Weidmann believes that restrictions on amounts are inevitable so that citizens do not switch their deposits from bank accounts to the digital euro indefinitely.