The objective of this program is to lengthen the average maturity of our securities holdings without generating a significant change in the size of our balance sheet. Removing longer-term securities from the market should put downward pressure on longer-term interest rates and help make financial market conditions more supportive of economic growth than they otherwise would have been.
Operating income (excluding the trading result) shows a distinct fall in this scenario: Net interest income for the German banking system as a whole (measured by total assets) will go down by almost 8%; cyclically driven commission and fee income will fall by 10%. Added to this are large write-downs in the event the assumed recession materialises.