“German economic output is likely to have declined considerably more sharply in the second quarter of 2020 as a result of the coronavirus pandemic than in the first quarter,” the Bundesbank explains in the latest edition of its Monthly Report. According to the Bundesbank, it can be assumed, however, that economic activity already bottomed out in April and that the economy has been recovering since then.

Bundesbank Vice-President Claudia Buch has emphasised the importance of improving the statistics database on providers of digital financial services, such as FinTechs and BigTechs, in order to safeguard financial stability. “We need better data to assess risks, vulnerabilities, and resilience,” she noted in a speech delivered in Kuala Lumpur, Malaysia.

Despite significant price losses on the capital markets, the financial assets of households in Germany rose in 2011 to a total of €4,715 billion at year-end. At the same time, households’ debt increased slightly to around €1,550 billion. Non-financial corporations’ acquisition of financial assets grew by roughly €209 billion and thus surpassed the increase in their external financing, which amounted to just under €190 billion.

The profitability of German credit institutions deteriorated in 2018, as the Bundesbank’s Monthly Report reveals in an analysis of the annual accounts of German banks. Profit for the financial year fell significantly compared to the previous year, down by 31% to €18.9 billion.