Some 3.2 billion euros, the Federal Reserve for 2015 to Berlin as the German Bundesbank announced on Wednesday , The slight increase in profits is also the hundreds of thousands immigrants benefit: 700 million euros will go to the reserve of the Federal Republic to finance the cost of the reception and accommodation of asylum seekers and refugees, however,
The billion profit of the Bundesbank is not automatic.. “Of course we could with the unlimited firepower of monetary policy making great profits,” Weidmann said. That’s not going, but to sound monetary policy.
The increase in profits last year declared Weidmann with sunken risk provisions and higher income from bonds transactions with the Bundesbank must participate in the common monetary policy for the euro area. So the Bundesbank could now some of its massive reserves for such transactions dissolve because Greek and Italian bonds, which were acquired at the high of the debt crisis expire. However, the Bundesbank reduced the provisions only slightly to 13.6 (previous year: 14.4). Billion euros the Bundesbank profit
A year earlier was 2.95 billion. At that time, the low interest rates had also pushed the surplus as billion provision for credit losses as a result of the single monetary policy directed by the European Central Bank (ECB). The Bundesbank sees as the purchase of government bonds critical. However, the securities are also a source of income. Interest income from the shops come proportionately the Bundesbank benefit.
As part of a massive new purchase program the ECB since last March inflated monthly € 60 billion in the purchase of government bonds and other securities. Proponents wish to operate with the money tide of economic growth and combat the low inflation in the euro area, which is considered the economic risk.
“Especially in the first half are temporary and again inflation below zero conceivable,” Weidmann said. But the main reason for the low inflation will stay low oil price – the pushes the economy on the other side. “There is absolutely no reason for pessimism. All in all, further upward the economic outlook of the euro area. “
Germany’s top central bankers therefore sees no need for further expansion of the ECB’s monetary flood. Had the governments once to the cheap central bank money used, “could increase to maintain the monetary policy program for longer than would be necessary for price stability, the pressure”. ECB President Mario Draghi had awakened in January with reference to bleaker economic data hopes for a further easing of monetary policy: The Governing Council will review the anti-crisis rate at the next meeting on March 10 and adapt it if necessary
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the most important source of the Bundesbank profit are traditionally the interest income. Net interest income fell last year to reach around 2.3 (3.1) billion euros. This is the lowest level since the start of monetary union.
This year, Schaeuble has scheduled a Bundesbank profit of 2.5 billion euros in the budget. What goes beyond it flows into the refugee reserve. So far, 12.1 billion euro are set in this reserve. Of these, 6.1 billion euros planned for the 2016 budget, the remainder of 2017. Schäuble wants to make do in the coming year despite rising refugee costs without new debt.
In the discussion about cash ceilings and abolish large banknotes as the 500-euro bill warned Weidmann against exaggerated expectations. There were “doubts mounted whether terrorists and criminals are prevented from illegal actions, because there is an upper limit or the large denominations are abolished”.
The EU is considering limits on cash payments. In addition, thinking in the ECB on the abolition of the 500-euro note. “I know of no letter of intent of the Governing Council announced to abolish the 500-euro bill. There is no decision, “Weidmann said.
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