• Germany's news in English
 
app_header_v3

Finance Ministry: 36 banks 'too big to fail'

The Local · 18 Dec 2012, 07:53

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.”

Story continues below…

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
This Week in History
75 years since one of Holocaust's worst massacres
Photo: DPA

On Thursday, German president Joachim Gauck spoke in Kiev 75 years after the Nazis slaughtered 33,771 Jews during one of the worst single massacres of the Holocaust.

Six things you need to know about troubled Deutsche Bank

Shares in Deutsche bank plunged on Friday morning, dragging down other European banks and markets worldwide. Here are six things to know about Germany's biggest lender.

Deutsche Bahn jacks up prices for first time in 3 years
Photo: DPA

Germany's main rail provider, the state-owned Deutsche Bahn (DB), announced on Friday that it will raise prices on long-distance train travel.

Baby found alive in suitcase with skeleton in Hanover
File photo: DPA.

A baby has been found alive, along with the skeleton of another infant inside of a suitcase in Hanover, police reported on Friday.

Morocco to speed up repatriation of illegal migrants
Photo: DPA

Morocco has agreed to streamline the procedures for the repatriation of citizens living illegally in Germany, the royal court said late on Thursday.

890,000 refugees arrived in Germany last year - not 1.1m
Photo: DPA

Previous reports had suggested that around 1.1 million people entered Germany to seek asylum last year. But now the German government has confirmed the number was actually lower.

Racist attacks cast cloud over Dresden Unity Day planning
A police vehicle in Dresden. Photo: DPA.

As Dresden prepares to host Germany’s national Unity Day celebrations on Monday, the capital of the eastern state of Saxony is upping security after a mosque was targeted by a homemade bomb.

Sinking Deutsche Bank stock sends shock across Europe
Photo: DPA

Shares in Germany's biggest lender Deutsche Bank plummeted on the Frankfurt stock market on Friday, dragging other European banks and global markets down with it, after reports some customers were pulling money out.

The Local List
10 things you never knew about German reunification
Reunification celebrations in Hanover in 2014. Photo: DPA

With German Unity Day (October 3rd) happening on Monday, Germans are looking forward to a three-day weekend. But did you know these facts about reunification and German Unity Day?

Munich pharmacy’s nighttime porno show draws crowd
Photo: DPA

When a police patrol in Munich's Sendlinger Tor area noticed a crowd gathered outside a pharmacy window they went to investigate. But the onlookers weren't interested in a new line of flu medicine.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Germany's 10 most Instagram-able places
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
15 pics that prove Germany is absolutely enchanting in autumn
Lifestyle
10 German films you have to watch before you die
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Retiring abroad: ensuring your health is covered
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
6,718
jobs available
Toytown Germany
Germany's English-speaking crowd