To be sure, part of the explanation is new techniques for shifting and sharing risks through various new instruments. But at bottom, I would argue that we are beginning to see the payoff from more formal and rigorous quantitative riskmanagement techniques for credit decisionmaking, techniques that have also been central to the development of new instruments for hedging, mitigating, and managing credit risk.
We wanted to acquaint ourselves with larger-scale digitalisation concepts early on and at the level of our institution as a whole. To achieve this, we set up an interdisciplinary committee to promote digitalisation topics at an early stage and across departments. Building on this, we are currently working on a “digital agenda” for the entire Bundesbank.