It's time to prepare for the financial institutions to raise interest rates, he told CNews member of the Bundesbank board of Thursday.
Many risk managers are focusing on credit and liquidity risks, but they also need to take into account the interest rate risk, said a board member of the executive board of the German Bundesbank, Andreas Dombret.
"Let's face it: there are a number of risk managers who have never witnessed the increase in interest rates and have never seen the risk of a rate hike. It's time to prepare for potential changes, "- said Mr. Dombret.
Former vice chairman of Bank of America European Global Investment explained that the German central bank takes very seriously to increase interest rates "very seriously" and "actively" working with German banks to changes in monetary policy did not violate their activities .
"If a sharp rise in interest rates will occur, it is, of course, be a problem for any bank", - said Andreas Dombret.
Members of the German central bank criticized the low interest rate in the euro zone, arguing that it harms the balance sheets of banks. Earlier this month, the president of the Bundesbank Yens Vaydmann called for the ECB to start tightening monetary policy.
Preparing the hard Brexit
Another risk faced by banks - it's "hard Brexit» and uncertainty about the future of the financial services industry.
"All I hear and read, like" hard Brexit », I do not have any signs to predict any other options. This is the scenario in which we have taken very seriously, as it is the basic scenario of what would happen, "- said Dombret CNBC.
Mr. Dombret advises banks that are interested in working in the European Union and do not have a license that will allow them to sell their services in the EU. He added that it is important to ensure that European companies and the public will be able to continue to receive a "very, very good" services offered by the City of London.
"Let us not forget that the City of London, which is the dominant financial center in the region, there will be very large financial center", - Dombret said.
Based on materials WELTRADE
