It is not made easy for the banks.
They are still weighing on the negative interest rates of the European Central Bank (ECB).
At the same time, however, they should be able to support the economic recovery after the pandemic.
But now the German supervisors from the Ministry of Finance, the Bundesbank and the financial supervisory authority Bafin are curbing lending through stricter capital requirements.
However, this is only contradictory at first glance, because the supervisors in other European countries are also counteracting price increases on the real estate markets with additional capital buffers.
Such a preventive measure must take place in good time, i.e. at an early point in time, so that the institutions have sufficient capacity to cover losses in the event of a crisis.
There are numerous signs of overvaluation, to which the ECB has made a decisive contribution with its extremely expansionary monetary policy.
With inflation rates still very high, the risk of changes in interest rates, in particular the possible price losses on bonds, is increasing significantly.
The banks are currently in a comfortable position: Fewer loan defaults, excess equity and improved profitability justify switching supervision from crisis to preventive mode.
It should not be forgotten: So far, banks have always failed because of too little equity, rather than too much.