Reviewing the economic developments in the past six months, the negative effects of the first two risks has proved to be evident. On the first risk, overseas economies have slowed down much faster than expected. Consequently, exports and production continue to decline sharply and fixed investment started to decrease against the background of deterioration in corporate profits.
After all, banks and savings banks have seen extensive reforms since the financial crisis, and they are afraid that the reforms will go even further and might be too much for them to cope with. This is why the reform is also often referred to as “Basel IV” ... But how justified are these fears? This is what I want to talk about today.