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Germany's Schaeuble says agrees with IMF on "ultra-loose" monetary policy risks
October 7, 2016 / 1:18 PM / a year ago

Germany's Schaeuble says agrees with IMF on "ultra-loose" monetary policy risks

WASHINGTON (Reuters) - German Finance Minister Wolfgang Schaeuble said on Friday he agrees with the International Monetary Fund’s warnings about the banking system risks associated with “ultra-loose” monetary policy, but said it was not the place of such institutions to supervise European banks.

Finance Minister Wolfgang Schaeuble speaks at a news conference on 2017 budget and financial plan till 2020 in Berlin, Germany July 6, 2016. REUTERS/Stefanie Loos/File Photo

Schaeuble, speaking at a news conference on Germany’s G20 leadership in 2017, said that the possibility of a new financial crisis could not be completely excluded. He declined to directly answer questions about the financial health of Germany’s largest lender, Deutsche Bank (DBKGn.DE).

“If the IMF itself is warning against the consequences of ultra-loose monetary policy, I think it’s a sign of hope that we will take more seriously what the Bank for International Settlements is saying again, again and again,” Schaeuble said.

“That two things together - the global overhang of indebtedness, private, public and company, together with an ultra-loose monetary policy - maybe is one of the risks we will have to tackle even since we have drawn all the lessons of the financial crisis 10 years ago.”

Reporting by David Lawder; Editing by Andrea Ricci

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