• Germany's news in English
 

Finance Ministry: 36 banks 'too big to fail'

Published: 18 Dec 2012 07:53 GMT+01:00

Following an official information request from Green Party finance policy spokesman Gerhard Schick, the Financial Ministry revealed that 36 specific banks are considered important to the German financial system, the Süddeutsche Zeitung newspaper reported.

Each institution on the list, which likely includes big names like Deutsche Bank, Commerzbank and HypoVereinsbank, as well as the state banks, has been asked to present an action plan by the end of 2013, outlining its crisis strategy.

Finance Minister Wolfgang Schäuble said after the request was announced in November that he would like to pass a law legally requiring the banks to do so.

But Schick criticised the fact that proportionally too much time was being spent supervising small banks than big banks.

Deutsche Bank, for example, accounts for 23 percent of the country's total banking assets but has just four percent of the ministry's experts watching over it, Süddeutsche Zeitung wrote. While small banks, which together account for eight percent of banking assets, have been assigned 20 percent of overseers.

Schick told the paper that “proportionally, big banks are seriously under-observed.”

He added that incidents like the Libor scandal highlighted just how much intensive observation should be going into big banks from the government.

The Local/jcw

The Local (news@thelocal.de)

Your comments about this article

11:30 December 18, 2012 by smart2012
Now u will understand why Germany was against eu banking supervision...
13:58 December 18, 2012 by twisted
And nothing will change. Instead of doing the right thing, breaking up the banks, they will just let them cruise along until another major atastrophe take place in the banking industry and then it will be too late.
09:08 December 19, 2012 by SynJyn Tweer
The problem is simple as long as we have thieves looking after thieves the banking system will rule.

It is time that the man in the street takes action do not support the big 36 remove your funds and accounts and change to the banks that can fail. GO ON THE STREET AND VOICE YOUR DISAPPROVAL OF THE CURRENT BANKING SYSTEM WHICH IS SUPPORTED BY THE POLITICAL POWERS!
17:03 December 26, 2012 by raandy
It is these "To Big To Fail Banks" that got us in the 2008 crisis in the first place , and now we want to turn a blind eye, nothing has changed .
Today's headlines
Wolf spotted in North Rhine-Westphalia
File photo: DPA

Wolf spotted in North Rhine-Westphalia

Camera traps have spotted a wolf for the second time in a month in North Rhine-Westphalia, the state environment ministry reported on Friday. READ  

German ranchers murdered in Paraguay
Paraguayan police on patrol in an area known to contain EPP rebels. File photo: DPA

German ranchers murdered in Paraguay

The Foreign Ministry in Berlin confirmed that two Germans living in Paraguay were kidnapped and killed earlier this week. READ  

AfD braces for busy conference weekend
"Vote AfD!" reads the flyover message. Photo: DPA

AfD braces for busy conference weekend

As leaders of the Germany's anti-Euro upstart party Alternative for Germany (AfD) prepare for its party conference this weekend, the potential for chaos is rising. READ  

Sudden dose of winter causes traffic chaos
Snow in Oberharz. Photo: DPA

Sudden dose of winter causes traffic chaos

UPDATE: Two people were rescued from avalanches as a blast of winter has taken Germany by surprise, while snow and ice accounted for several traffic accidents across the country on Friday. READ  

BND collects 220 million phone records a day
Photo: DPA

BND collects 220 million phone records a day

Germany's foreign intelligence agency, the Bundesnachrichtendienst (BND) collects 220 million pieces of information about foreign phone calls and SMS every day, Zeit Online reported on Friday. READ  

U-turn on minimum wage for foreign drivers
Photo: DPA

U-turn on minimum wage for foreign drivers

Germany temporarily hit the brakes Friday on applying its new minimum wage to foreign truck drivers transiting the country in a move welcomed by Poland, which vigorously opposed the system. READ  

Crises make Germany EU foreign policy leader
Foreign Minister Frank-Walter Steinmeier. Photo: DPA

Crises make Germany EU foreign policy leader

Foreign policy think-tank the European Council on Foreign Relations (ECFR) gave Germany top marks in its annual check-up of EU member states released on Thursday. READ  

Prost! Beer sales hop up for first gain in 8 years
Photo: DPA

Prost! Beer sales hop up for first gain in 8 years

New figures released Friday by federal statistics office Destatis are numbers breweries can drink to, as German beer consumption saw its first year-on-year rise since 2006. READ  

Germany has thousands of uni spots open
Photo: DPA

Germany has thousands of uni spots open

New research published by Spiegel on Friday shows that there are thousands of university placesa unoccupied across the country, while certain hot spots cope with too much demand. READ  

Borussia coach admits to 'downward spiral'
Borussia Dortmund coach Jürgen Klopp at a press conference. Photo: DPA

Borussia coach admits to 'downward spiral'

Borussia Dortmund coach Jürgen Klopp admits feeling the pressure as his side resume their fight to stay in Germany's top flight on Saturday at fellow Champions League side Bayer Leverkusen. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
FATCA: 'The age of financial privacy is over'
Gallery
The best regional foods TTIP opponents want to protect
Photo: DPA
Features
The rise and spread of Pegida
Photo: Shutterstock
Culture
This cosplayer did not think his plan through
National
Europe in statistics - from Spain to Sweden
Photo: DPA
Politics
The Local's report from Pegida's largest ever demonstration.
Sponsored Article
Top-notch tech boosts bilingual schools
National
Six stories that will rock Germany this year
Photo: DPA
National
Terror alert at a new high. Should you be worried?
Dresden skyline and river by night. Photo: DPA
Politics
What does Dresden have against Muslims?
Photo: DPA
National
What were your favourite news stories of 2014?
Gallery
Top 12 German idioms
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,971
jobs available
Toytown Germany
Germany's English-speaking crowd