The key risk is then the so-called interest rate risk in the banking book. Only a few weeks ago, we published our 2017 survey of over 1,500 small and medium-sized German credit institutions. In a scenario of rising interest rates, while institutions would initially and on average face a sharp decline in profits, they would be better off in a medium-to-long-term.
At present the need to combat Money Laundering and Financing of Terrorism is increasingly changing the role and mandate of the Central Bank which is required to honour various Freeze Order requests by police and requests from International stakeholders like the US Embassy and local stakeholders like the Financial Intelligence Authority.