On the other hand, it is precisely in such times that we need to stop for a second, take stock and ask: What is actually the current state of financial stability? And what should be the key criteria informing a smart financial stability policy and a smart regulatory regime?
After all, our Financial Stability Review seeks not just to analyse current events but also to find answers to longer-term questions as well. The current situation What is our assessment of financial stability in 2011? Our main diagnosis is that the risks to the German financial system have increased perceptibly this year.