2026 LSI stress test: Banks’ and savings banks’ capital buffers robust

Germany’s small and medium-sized banks and savings banks remain highly resilient. Despite a tense economic situation, heightened geopolitical risks and rising burdens, especially in corporate and commercial real estate business, institutions have, on the whole, a sound capital base which is sufficient to cope with severe crises. Bafin Executive Director Nikolas Speer and Bundesbank Executive Board member Michael Theurer today announced this fundamental outcome of the stress test for less significant institutions (LSIs).