The ESRB also called for close coordination between relevant authorities and prudent risk management practices across all financial sectors. German authorities already responded to increased cyclical risks in January 2022. The Federal Financial Supervisory Authority ( BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)) decided on a package of macroprudential measures aimed at preserving and enhancing the resilience of the German banking system.
In terms of money-based indicators, the proportion of net foreign exchange assets of RBI (NFA) to currency with the public has sharply increased from 15 per cent in 1991 to 109 per cent as at end-March 2002. The proportion of NFA to broad money(M3) has increased by more than six fold; from 3 per cent to 18 per cent.