The general manager of the banking association, Christian Ossig, does not expect another sovereign debt crisis in view of the turnaround in interest rates.
"I don't think there will be a new sovereign debt crisis," Ossig told the news portal t-online.
"The current rise in interest rates will not present the southern states with insurmountable challenges." The banks in Germany and Europe are well positioned for this.
"The banks are stable today and are much more robust than before the financial crisis in 2008," said the head of the Association of German Banks. With the current challenges, the first real bank test is now pending. "We will master the test," said Ossig. Nevertheless, countries like Spain, Italy or Greece should of course position themselves better for the future and reduce their debt.”
The European Central Bank (ECB) raised its key interest rates for the first time in eleven years on Thursday.
At 0.5 percentage points, the increase was higher than expected.
Above all, highly indebted countries such as Italy are additionally burdened by this.
Because they have to offer higher interest rates in order to get money through government bonds.
However, the ECB also approved a new tool aimed at tackling the widening spread between euro area government bond yields.
Bank boss Ossig emphasized that it would still not work without discipline.
In the long run, no one can spend more than they earn.
"That applies to Germany, but also to all other countries." At the same time, Ossig called for more leeway for the banks in terms of equity requirements.
“After the financial crisis, the high equity requirements for lending were correct.
Today, however, we need more flexibility, especially when it comes to financing projects in the fight against climate change," says Ossig.
“Such investments must have lower requirements than riskier loans.
The rules are now too strict.
It doesn't work that way in the long run."