Bundesbank speech on banking stability, AI and climate risks

Michael Theurer of the Deutsche Bundesbank delivered a speech at the Bayerischer Sparkassentag in Lindau on how financial supervision supports stability amid demographic change, AI, and climate risk.

• He said the Bundesbank’s mandate is to identify risks in bank balance sheets and preserve financial stability, and argued for simplifying regulation without weakening stability.
• He highlighted that German banks have more than 180 billion euros in excess capital, noted a Bundesbank technical paper saying banks could finance additional investments for Germany’s 2045 climate-neutrality target, and backed an EU small-banks regime proposal with Bafin.
• On AI and digitalization, he pointed to major investments in digitalization, platforms, data centers and AI, urged implementation of DORA, and warned about cyber risk, dependence on large foreign tech providers, and future quantum-resistant cryptography needs.