The Bundesbank said it welcomes a new law that will introduce macro-prudential supervision at a national level and the formation of a Financial Stability Board.
The Financial Stability Act, which has been passed by the lower house of parliament, will strengthen German financial supervision and respect the Bundesbank’s independence, the Frankfurt-based central bank said in a statement.
The act envisages the establishment of a German Financial Stability Board on which the Bundesbank, the Federal Ministry of Finance and the Federal Financial Supervisory Authority will each have three representatives, the Bundesbank said.
“It will discuss issues that are key to financial stability, and will be able to issue warnings and recommendations if financial stability comes under threat,” Bundesbank board member Andreas Dombret said in the statement. “Germany is showing that it has learned a key lesson from the financial crisis. We welcome the fact that there will now be a clear and separate legal mandate for macro-prudential oversight.”
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