• Germany's news in English

Finance Ministry: 36 banks 'too big to fail'

The Local · 18 Dec 2012, 07:53

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

Facebook Twitter Google+ reddit

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)

Facebook Twitter Google+ reddit

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
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

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 towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

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
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