Bundesbank’s Latest Financial Stability Review

The coronavirus pandemic and the measures taken to contain it led, in the first half of 2020, to the severest economic downturn for decades, with nearly all sectors of the real economy being affected. Even though the shock did not originate in the financial system – unlike the global financial crisis in 2007-08 – its indirect impact there was nonetheless significant. In adverse scenarios, there are risks to financial stability which call for adequate preparation.