Regulatory Alerts2026-07-01
Added · Updated
Thirteenth AFS Report on Financial Stability in Germany – Geopolitical Tensions Increase Uncertainty for the Financial System
The Financial Stability Committee (AFS) presented its thirteenth report to the German Bundestag, assessing the German financial system's resilience and the adequacy of its macroprudential policy package for the period April 1, 2025, to March 31, 2026. The report identifies high economic and geopolitical uncertainty, particularly from the Iran conflict, as a major risk factor that could increase credit risks in the banking sector, especially for corporate loans, while also noting rising cyber risks and vulnerabilities in open-ended real estate funds. The AFS deems the current macroprudential measures, including a 0.75% countercyclical capital buffer and a 1.0% sectoral systemic risk buffer on residential real estate loans, as appropriate and commits to continuous monitoring and flexible adjustment of these measures to maintain financial stability.