(Finance) – “TheRussian invasion of Ukraine led to a sharp increase in uncertainty on the financial markets. Globally, risks have been reassessed and there has been a significant shift from risky assets to assets deemed safe. The reactions of the financial markets, although considerable in some cases, have mostly unfolded in an orderly fashion in Western countries. Till now there were no major disruptions in the functioning of the German financial system“This was stated by the German Committee for Financial Stability (FSC) in the periodic report presented today to the German Bundestag.
“The direct effects of the war are manageable for the German financial system as a whole – the Committee added – The direct exposure of German financial intermediaries to debtors in Russia, Ukraine and Belarus is overall modest. However, the macroeconomic conditions worsened as war approaches. Inflation has risen significantly, while growth prospects have worsened. “
The report examined the period from 1 April 2021 to 31 March 2022, therefore, the analysis of the effects of the war was limited. The FSC comprises representatives of the Federal Financial Supervisory Authority (BaFin), the Bundesbank and the Federal Ministry of Finance.