BBK Vice President Buch: ‘Credit and Liquidity Risks Could Increase’

9 October 2023

By David Barwick – FRANKFURT (Econostream) – German Bundesbank Vice President Claudia Buch warned on Monday of the build-up of risks as a consequence of rapidly risen borrowing costs.

Speaking to journalists, Buch said, ‘The sharp rise in interest rates has exposed vulnerabilities in the financial system, although the full effects of increased interest rates have not yet become apparent. Credit and liquidity risks could increase.’

‘Financial institutions should use the current good profit situation to strengthen their resilience’, she urged.