June 27, 2017 / 11:46 AM / 6 months ago

Low interest rates biggest risk to German financial system - committee

BERLIN, June 27 (Reuters) - Low interest rates are the biggest risk to Germany’s financial system which is robust overall, the financial stability committee said on Tuesday, adding while the banking system has become more resilient, risks have also increased.

The proportion of long-term capital investments financed at low interest rates is growing.

“So the risks that are linked to an abrupt rise in the interest rate level could increase,” said the committee which includes leading representatives from the finance ministry, Bundesbank and financial regulators.

It also said cyber attacks posed an increasing risk for financial stability. (Reporting by Klaus Lauer; Writing by Madeline Chambers; Editing by Paul Carrel)

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