Bundesbank’s Dombret: Rising rates will strengthen stability of German financial system in medium term

Below are the comments from the German central bank, Bundesbank (Buba), board member Andreas Dombret, as he speaks following the release of the Bundesbank 2017 Financial Stability Report.

Market participants may underestimate risks due to low-interest rates, the favorable economic situation in Germany.

Banks must prepare for a rate hike in a timely manner.

Unexpectedly strong or fast rate hikes could adversely affect the German financial system.

Rising rates will strengthen the stability of the German financial system in the medium term.