As soon as the mandatory and voluntary protective measures are gradually lifted, the German economy will be able to get back on the road to recovery. The precise time path of possible easing is uncertain. It depends not least on infection rates. Thus far, our economists have assumed that more pronounced easing will occur during the second quarter of this year.
As BNYM becomes the sole provider, we will raise our expectations even higher. The bank has anticipated and welcomed this higher bar. BNYM is one of 8 U.S.-based systemically important banks. The bank is therefore subject to heightened capital and liquidity requirements and a resolution process that explicitly requires planning to ensure the continuity of critical services even in the event of a default.