Developing countries have, however, expressed concerns that sometimes these standards and codes are too inflexible, that they do not allow for differences in institutional development, legislative frameworks and different levels of development. The developing countries feel that setting principles rather than rules may be more effective in ensuring compliance.
The purpose of our Financial Stability Review is therefore to assess possible risks going forward as well as the German financial system’s resilience in the light of potential, but not unrealistic adverse developments. Recent upward revisions of growth forecasts should not blind us to the fact that the more benign global economic climate is mainly the outcome of the large-scale fiscal stimulus programmes.