German Watchdog: Banking sector solid, outlook still unclear

Germany’s financial firms remain resilient, but high uncertainty continues to cloud the outlook, according to Germany’s bank watchdog BaFin President Mark Branson.

Speaking on Wednesday Branson acknowledged that while the sector had navigated recent turbulence effectively, risks from the non-banking sector could still spill over, according to Reuters report.

“The possibility that problems in the non-banking sector have an impact on banks cannot be ruled out just because we have weathered the turbulence well so far,” he said.

Branson’s remarks come as regulators across Europe monitor financial stability risks linked to shadow banking and market volatility.

Attribution: Reuters

Subediting: M. S. Salama