For the first time since 1979, the Deutsche Bundesbank is not transferring any money to the federal government due to increased risk provisioning. In the view of Prof. Volker Wieland, the Bundesbank is acting appropriately: "Its goal is not to maximize profits, but to implement monetary policy adequately for the national economy, to stabilize inflation, to maintain the value of the currency and to fight recession," he said in an interview with Tagesschau.de and HR-Info.
However, if the central bank were to make permanent losses and its equity capital were to melt away, Wieland sees a risk that confidence in the currency would decline.
Tagesschau.de: "Bundesbank überweist kein Geld an den Bund"
Kommentar von Prof. Volker Wieland im Radio-Beitrag bei HR-Info: "Bundesbank überweist kein Geld an den Bund" (Audio)
