In addition, especially since crises can arise even if domestic credit and fiscal conditions are in reasonable shape, it is also important to ensure the macro-financial system is resilient even in the event of severe external shocks.
Moreover, confidence in the German banking system is also benefiting from the fact that government budgets in Germany are deemed to be comparatively sound. Vulnerabilities and structural weaknesses in the German banking system nevertheless continue to exist. The differences in the performance of individual institutions or categories of institutions have, if anything, become greater.