Bundesbank President Jens Weidmann sees no reason to move away from the last monetary policy assessment at the moment and cautions against pre-empting decisions that are not yet on the agenda. “The monetary policy stance is appropriate at this time,” he told interviewers from the German “Börsen-Zeitung” newspaper.

According to Bundesbank Executive Board member Joachim Wuermeling, it is still too early to breathe a sigh of relief concerning the banking sector. “Economic activity is recovering, but the economic crisis only has a delayed effect on banks,” he said at an event in Berlin. Up to now, bank balance sheets had tended to be affected only in isolated cases by the coronavirus crisis. However, insolvencies can trigger credit defaults at short notice.

German banks’ profitability deteriorated further in 2019. However, this is due primarily to strategic restructuring at one big bank, the Bundesbank’s economists note in the latest issue of the Monthly Report, with the resulting negative one-off effect overshadowing the growth in profit for the financial year observed for all other categories of banks.

The sharp decline in gross domestic product in spring is likely to be followed by a strong countermovement in the third quarter of 2020, the Bundesbank writes in its latest Monthly Report. Even so, the third quarter will still be significantly down on the pre-crisis level.

Bundesbank President Jens Weidmann feels that the introduction of central bank digital currency (CBDC) needs careful consideration. The various risks suggest that a prudent design and cautious approach would be essential, he said at the Bundesbank’s virtual autumn conference. CBDC is not necessarily needed to provide the general public with quick, secure and cheap payment methods.

In 2019, the trend towards cashless payments picked up. Even prior to the coronavirus pandemic, payments with debit cards (often issued in the form of "girocards" in Germany) gained ground in particular. Their usage increased by 20% on the year, with the cards being used ever more frequently for smaller transactions.

Bundesbank President Jens Weidmann says the government acted swiftly and comprehensively in the coronavirus crisis. But finding a way out of crisis mode will be equally important. The crisis is forcing economic and fiscal policymakers to perform a tricky balancing act – supporting the economy in the short term, but not obstructing the necessary change or losing sight of the longer-term challenges.

From 10 September, the €5 collectors’ coin “Subpolar zone” and the €10 collectors’ coin “Ashore” are available at the branches of the Bundesbank.

The Heads of State or Government of the EU countries have agreed to set up an off-budget entity to help address the fallout from the coronavirus pandemic. Writing in the latest edition of the Monthly Report, the Bundesbank’s economists note that while solidarity is understandable, it is worrying that the financial assistance will be funded by large-scale and long-term Community debt.

The coronavirus pandemic caused a historic decline in economic output in Germany, writes the Bundesbank in its most recent Monthly Report. Both the depth and speed of the crash were unprecedented. At present, however, the economy is on a recovery path and is expected to grow steeply in the third quarter.