The Bundesbank is currently running a multi-year programme for the future known as “Wandel”. Its objective is enable the Bundesbank to continue to help shape the Eurosystem and SSM as a stable partner and to fulfil its mandate as best it can in an era of growing complexity. Three dimensions take centre stage here: strategy and steering, process optimisation and adjusting the organisation to more flexible and agile structures. 

The new steering model allows for a stronger focus on the impact of the Bundesbank’s activities and thus a more efficient use of resources. Continuous process optimisation will help to make workflows even more efficient and put customer utility front and centre. An agile organisation creates greater freedom and flexibility to respond more quickly to complex challenges. 

Strategy 2027

Overarching aims

As the central bank of the euro area’s largest economy, the Bundesbank is committed to acting as a reliable partner for a stable currency. Based on our recognised expertise and the people’s trust, the Bundesbank is actively helping to shape the future of the monetary union. The digital euro, for example, is anchored in the new strategy as a key topic for the future. The Bundesbank is seeking to be a leader in the development and implementation of the digital euro.

Like the economy and society as a whole, the Bundesbank must identify future challenges at an early stage and respond rapidly and specifically to them. It is bracing for key developments such as technological change, changes in the financial system, demographic change and, in connection with this, growing competition for skilled workers. There are also geopolitical challenges such as international trade conflicts and global tensions. By realigning its strategy, it has further improved the setting within which it can respond rapidly.

However, in order to be prepared for the future, the Bundesbank is also streamlining its processes, reviewing how it is organised and, amongst other things, enhancing its efficiency through the use of new technologies.

Development of Strategy 2027

The Bundesbank has reviewed its strategy and steering process and restructured it in respect of performance and impact:

The four external core services “Monetary Policy”, “Money”, “Financial Market Services and Statistics” and “Financial Supervision and Financial Stability” embody particular aspects of the Bundesbank’s legal mandate. In addition, there are internal core services, such as “Human Resources and Education”, and functions, such as “Controlling and Finance”.

The target agreements agreed between those responsible for core services and functions and the relevant members of the Executive Board form a key element of the strategy and steering process. The key elements of these agreements are the target images, which illustrate the desired long-term strategic impact of the Bundesbank’s services. Members of the Executive Board are regularly informed about the progress towards achieving the target images, and methods of dealing with obstacles are regularly discussed. Once a year, the target agreements undergo an in-depth review. 

Staff from all quarters of the Bundesbank were involved in developing the strategy and these target images, which meant that the process was conducted transparently and openly and resulted in a strategy that enjoys broad support. 

The target images of the external core services

In order for the Bundesbank to successfully fulfil its statutory mandate in the long term, it must set its priorities consistent with its mandate. These priorities are set out in the target images of the external core services (Money, Monetary Policy, Financial Supervision and Financial Stability, Financial Market Services and Statistics).

 

Monetary Policy

The Bundesbank makes an important contribution to monetary policy decisions for the euro area and their implementation through analyses, forecasts and market monitoring. We advise national and international institutions on monetary and economic policy issues and are expert participants in the academic debate. In doing so, we make valuable contributions to selected topics, including the major economic policy challenges of decarbonisation, demographic change, deglobalisation and digitalisation. We are committed to effective and sustainable solutions in the implementation of monetary policy, characterised by market orientation and risk efficiency. We deploy the monetary policy toolkit in Germany efficiently and resiliently. In addition, we manage foreign reserve assets in a modern and forward-looking manner. Ultimately, we guarantee our capacity to act with respect to monetary policy at all times. As part of our mandate, we seek to act as a catalyst in achieving the climate targets consistent with the Paris Agreement.

 

Money

The Bundesbank plays a formative role in the area of money and payment infrastructure in Germany and the euro area. Cash, cashless payments and the digital euro complement one another here. Through a needs-based, resilient and sustainable payment infrastructure, we strengthen the economy, ensure the public’s ability to freely choose means of payment and contribute to maintaining public confidence in our monetary system. As part of our statutory mandate, we shape cash and cashless payments in Germany and the euro area in a future-oriented and active manner. We support the attractiveness and acceptance of and access to cash. In cashless payments and securities custody business, we are a reliable business partner for banks, public administrations, comparable institutions and foreign bank account and safe custody account holders, as well as a co-operator of the TARGET system for the Eurosystem central banks. We consider the digital euro to be one of the most important projects since the introduction of the euro and an important pillar of the future monetary system.

 

Financial Supervision and Financial Stability

In financial supervision and financial stability, the Bundesbank contributes significantly to confidence in the stability of the banking and financial system – in Germany, Europe and globally – through its strong analytical skills and, in technological and content-related terms, seminal supervisory work. We effectively link the analysis of individual institutions with the view of the risk situation throughout the financial system. Our financial supervision stands for a high level of ambition and ability to (re)act rapidly, especially in crisis scenarios. As part of our statutory tasks, we take into account new risks from digitalisation, decarbonisation and deglobalisation. By virtue of our sound expertise, we are the national competence centre for financial stability and raise important topics in national and international supervisory and financial stability bodies.

 

Financial Market Services and Statistics

As an independent, trustworthy and high-performing partner, the Bundesbank provides financial market services as well as data products, data services and data infrastructures with a customer focus. In asset management, we provide independent and needs-oriented support to the federal and state governments and are continuously enhancing our range of services and investments. For our clients, we offer portfolio management, trading, settlement and investment services as well as independent risk control and reporting. Sustainability issues are of great importance to us. The provision of primary market auction systems in underwriting business, market management and the management of euro reserves are further integral components of our range of services. In statistics, we play a leading role in theESCB/SSM in the collection and provision of data using modern data infrastructure. We provide the public and other national and international institutions with reliable information, thereby promoting data-driven decisions by policymakers, businesses and society.