The Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank have welcomed the agreement reached by the oversight body of the Basel Committee on Banking Supervision to wrap up the Basel III reform package.

Germany’s economy has been expanding for eight consecutive years now. Enterprises and households alike can borrow cheaply, and market volatility is low. However, there is a danger that low interest rates and the favourable economic conditions in Germany might cause market participants to underestimate risks.