As a result, credit demand in the private sector has continued to be basically stagnant, and thus private banks’ lending has remained sluggish. Issuance of corporate bonds and CP has been steady. The growth in money stock (M2+CDs) continues to slow reflecting the above-mentioned situation.
German banking supervisors do not and cannot even dare to guarantee that banks will be fully compliant; rather the emphasis is on ensuring that • banks’ senior management have focused on the scale of the problems facing their institution, • they are taking responsibility for solving them, • the banks systematically plan the relevant projects and implement them in a timely manner, and • they have contingency plans in place to rectify any slippage or system failure.