Financial regulator sees rough waters for Germany

The logo of Germany’s Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside a BaFin office building in Bonn, Germany April 15, 2019. REUTERS/Wolfgang Rattay

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BERLIN, July 13 (Reuters) – Germany’s financial sector faces an uncertain future amid the energy dispute with Russia, the head of German financial regulator BaFin said in a newspaper interview published on Wednesday.

“I don’t see any acute short-term threat to financial stability – but ask me again in three to six months. Then things might look different,” BaFin chairman Mark Branson told the Sueddeutsche. Zeitung.

He warned that an energy crisis would impact the entire German economy, as fears grow that Russia could cut its gas exports to the country even further.

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“The state can’t absorb everything,” Branson said.

The financial watchdog pointed to banks struggling with defaults, but said for now the financial system was robust.

“Banks have a lot more capital than before to cushion losses.”

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Written by Rachel More, edited by Kirsti Knolle

Our standards: The Thomson Reuters Trust Principles.

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