However, if the slowdown in emerging economies becomes much deeper than expected or prolonged, the negative impact on Japan’s economy accordingly will be larger. What matters most is the impact on the business confidence of Japanese firms.
It is not without good reason that one main chapter of our recent Stability Review was entitled Increases and differences in resilience in the German financial system. That is one of the key messages of our Stability Review. This means, first of all, that resilience improved overall last year.