Small and medium-sized institutions prove largely resilient to a simultaneous rise in the three types of risk. 2/4  BIS central bankers' speeches  Thus the stress test scenario presents a mixed picture overall. On the whole, German banks and savings banks are robust and in good shape.
But this should not blind us to the major challenges and the associated need for adjustments that banks face. Elevated interest rate risk and the low level of risk provisioning increase vulnerability to shocks. I would therefore call on banks to focus their risk management operations primarily on the issues of maturity transformation and interest rate risk. 5.