The Bundesbank warns banks against underestimating inflation risks. Bundesbank board member Joachim Wuermeling told the “Börsen-Zeitung” (Tuesday) that he saw “a certain risk in focusing on the effects of the pandemic in such a way that other risks, which may be larger and longer-term, receive too little attention to get". Specifically, he is thinking “for example of the consequences of possibly prolonged inflation and an associated rise in interest rates, as we are already seeing in the USA and other countries,” said Wuermeling. "As a result, market and interest rate risks can materialize noticeably here."
Inflation in Germany and in the euro area as a whole has increased significantly in recent months.
The European Central Bank (ECB) explains the rise in inflation primarily with special factors that should weaken in 2022: for example, the rise in oil prices after the corona shock and delivery bottlenecks as a result of increased demand.
However, Europe's monetary authorities are now also assuming that inflation rates will decline more slowly than initially expected.
Cyber attacks on the radar
Wuermeling rates the risk from cyberattacks as the most important non-financial risk for banks.
“Fortunately, the cases we've seen so far have been limited.
But I believe that we don't even know the real dimension that cyber incidents can have, ”said the Bundesbank board member responsible for banking supervision.
"We are increasingly seeing risks resulting from the digitization of banks," said Wuermeling.
Banks' sensitivity to such risks has increased significantly in recent years.
"There is progress, but there are still weak points." Wuermeling warned that the fight against cybercrime is a race against time: "The attacks are becoming more and more subtle, more sophisticated, more professional."