The current environment certainly presents some fundamental challenges for banking institutions of all types and sizes. 1 Their boards of directors and senior management, who bear the responsibility to set strategy and develop and maintain risk management practices, must not only address current difficulties, but must also establish a framework for the inevitable uncertainty that lies ahead.
The Agenda 2010 reform programme was also controversial in its day. Today we are reaping the dividends – unemployment is lower, employment, including among older workers, is higher, and the social security scheme is in better shape financially. Another point is also important, though: in 2013 Germany will have a balanced government budget for the second consecutive year.