Market reaction to a change in official interest rates will depend on the extent to which the change is anticipated, and on how it is interpreted as a signal of future policy. In this paper, a technique is developed to separate the anticipated and unanticipated components of such changes and is...

The global economy is undergoing a rapid digital transformation that is changing many conventional notions about our behavior and preferences. This includes the way in which we, as consumers, as businesses, or in interactions with government, seek out goods and services and pay for them or how...

As part of the 2011 Financial Sector Assessment Program (FSAP) update for Germany, this Technical Note reviews recent developments of mortgage-covered bond (Pfandbrief) and mortgage securitization markets in Germany, and explores future prospects for each against the background of ongoing...

This note summarizes the stress tests undertaken for the German banking system as part of the Financial Sector Assessment Program (FSAP) update. Solvency tests for the German banking system assessed medium-term vulnerabilities under two adverse macroeconomic scenarios. The tests considered a...

This paper discusses Germany’s challenges and measures to strengthen crisis management arrangements. Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and the Bundesbank have closely coordinated with the interagency risk committee on banking matters, which also encompasses BaFin...

This Selected Background Issues paper examines the process of international financial integration in Germany, focusing on both banking and securities markets. The examination is useful both because of the size and importance of Germany’s economy and because of the structure of its financial...

This paper reviews economic developments in Germany during 1990–95. In early 1995, both western and eastern Germany seemed well poised to continue on their respective growth paths. However, the economy was then confronted by a sharp nominal appreciation of the deutsche mark—translating into...

This Recent Economic Developments and Selected Issues paper highlights that Germany’s recovery from the 1993 recession, which had already been weaker than the previous three recoveries, stalled in the third quarter of 1995; output subsequently contracted in the fourth quarter of 1995 and first...