Third, persistently weak earnings are taking their toll on German banks. The low-interest-rate environment will particularly make itself felt at small and medium-sized institutions over a medium to long-term horizon. Institutions will need to tackle these challenges head on if they are to safeguard their stability and profitability. My advice to them is this: there’s no blueprint for guaranteed success.
But rules can only take us so far. Ultimately, it is people who make good or bad decisions. And this is where banks’ risk managers come into play. They are the first line of defence against excessive risks. Thank you for your attention. 2/2  BIS central bankers' speeches