Page 6 of 19 Deutsche Bundesbank, Directorate General Communications Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Germany, tel. : +49 (0)69 9566 3511, fax: +49 (0)69 9566 3077 presse@bundesbank.de, www.bundesbank.de Reproduction permitted only if source is stated. would darken the outlook for the rest of their lives and cause long-term damage to the economy as a whole.
A broad wave of insolvency could also lead to a sharp rise in the number of credit defaults. And banks might be forced to lend less. This, in turn, would further exacerbate the financial situation of enterprises, in particular. And clusters of credit defaults always pose a risk to financial stability.