What’s more, the extensive government bond-buying programme will be kicking off shortly, putting more pressure on the German yield curve – that will present quite a challenge for domestic institutions engaged in maturity transformation.
So the big question facing savings banks and other credit institutions right now is how they can overcome the challenge posed by low interest rates, and how they intend to go about it. I would urge you to take a sober view of the interest rate situation – not with a sense of anxiety, just realistically.