Persistently low interest rates pose risks to financial stability, warn Bundesbank Deputy President Claudia Buch and Executive Board member Andreas Dombret at the press conference to unveil the Bundesbank's 2015 Financial Stability Review. This, they caution, applies particularly to banks and insurers.

In the first quarter of 2014, the financial assets of households rose by €54 billion on the quarter, climbing to €5,207 billion. The transaction-related acquisition of financial assets accounted for a relatively large share of this increase (€49 billion), while valuation gains played only a minor role (just under €5 billion).

The German economy has recovered more quickly than expected from the cyclical lull in the middle of last year and has returned to a growth path that is underpinned by domestic and foreign demand. Domestic economic activity is benefitting from the favourable labour market situation and the substantial wage increases.