• Germany's news in English

Bank association warns capital regulations could throttle lending

The Local · 6 Sep 2010, 17:55

Published: 06 Sep 2010 17:55 GMT+02:00

Facebook Twitter Google+ reddit

The possible introduction of a strict ratio linking banks' capital to their lending activities would be "counter-productive" since banks would be forced to reduce their loans, Germany's BdB federation said in a statement.

"Going too far would threaten the economic recovery and positive developments on the labour market," the statement said.

The Switzerland-based Basel Committee - the main international forum for banking regulation - is expected to meet on Tuesday to discuss tighter rules aimed at trying to avert another global financial crisis.

The new rules are set to go for final approval before a meeting of the Group of 20 developed and emerging economies in Seoul in November.

The BdB federation said that implementing all the new regulations would force Germany's top 10 banks to raise €105 billion ($135 billion).

Story continues below…

The German government has expressed some reservations but has not directly opposed the new rules and has said it hopes for a long transition period.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

20:04 September 6, 2010 by Prufrock2010
Of course! This is yet another example of the banks blackmailing the government, just as they successfully did in the good ol' US of A. Their bluff needs to be called. If banks don't lend they don't make money except by high risk investment schemes, which also need to be regulated. It's time to stop allowing the tail to wag the dog.
23:10 September 6, 2010 by William Thirteen
the bank association coming out against regulation and capital requirements - what a surprise. next they'll be telling me the pope is catholic and bears sh+t in the woods - or is that the other way round?
Today's headlines
Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German town, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd