- The Bundesbank reported a distributable profit of zero for 2022 and tapped €1 billion worth of risk provisions to offset exceptional financial burdens caused by the monetary policy turnaround.
- Bundesbank President Joachim Nagel highlighted the need for a tight monetary policy to restore price stability, even if it entails strains on the balance sheet, which he stated is sound.
- Inflation in Germany rose sharply in 2022, with prices increasing by 8.7% as measured by the Harmonised Index of Consumer Prices (HICP), driven by various factors including the war in Ukraine.
- The Bundesbank Executive Board member responsible for accounting and controlling, Joachim Wuermeling, noted the complexity of the impact of interest rate hikes on the bank’s profit and loss account, with net interest income increasing but offset by valuation losses and higher interest rates on deposits.
- The Bundesbank’s total assets reduced by €108 billion in 2022, mainly due to the decline in refinancing operations, while liabilities to credit institutions related to monetary policy operations increased.
https://www.bundesbank.de/en/tasks/topics/annual-report-2022-904442