Challenges for the German banking system  The ongoing crisis has been challenging for the banking system in Germany and Europe as a whole. Nevertheless – as stated in my third proposition – the risk outlook for the German banking system has been improving. Generally, it has to be borne in mind that the German banking system is dominated by domestic business activity.
Against this background and in full accordance with our mandate, we emphasise that maintaining price stability in the medium term is our primary objective and that it is our strong determination to keep medium and long-term inflation expectations firmly anchored in line with price stability. This will preserve purchasing power in the medium term and support sustainable growth and employment.