FRANKFURT (Dow Jones)--Germany's finance ministry has drafted a bill that would give regulators more power to supervise banks and insurance firms, a ministry spokeswoman said Wednesday.
If passed, the new law would boost regulators' rights to obtain company-specific information and set stiffer capital requirements, and would also allow them to intervene in a timely fashion on risks of rapidly deteriorating balance sheets, according to a document seen by Dow Jones Newswires.
"It's all about regulators' right to intervene," said Jeanette Schwamberger, a spokeswoman at the finance ministry. "That's what the coalition committee has agreed on," she said.
According to the document, which forms the basis of the draft bill, financial watchdog BaFin could force banks to raise their capital ratios, or the capital they hold against risky assets.
Despite some improvements following the launch of the government's EUR500 billion SoFFin financial markets stabilization fund, the capitalization of German banks has often been behind that of their U.K. and U.S. peers.
The German cabinet is expected to approve the draft bill March 25, and legislation could be implemented before the parliament's summer break, the spokeswoman said.
-By Nina Koeppen and Andreas Kissler, Dow Jones Newswires; +49 69 2972 5509; nina.koeppen@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=YP4aEomnnr3fVmx9HToUdQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
March 18, 2009 10:07 ET (14:07 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 10 07 AM EDT 03-18-09
Wednesday, March 18, 2009
Stiffer German Bank Capital Requirements/Regulations Will Soon Darken the Growth Outlook; Deutsche Bank in the Crosshairs
FRANKFURT (Dow Jones)--Germany's finance ministry has drafted a bill that would give regulators more power to supervise banks and insurance firms, a ministry spokeswoman said Wednesday.
If passed, the new law would boost regulators' rights to obtain company-specific information and set stiffer capital requirements, and would also allow them to intervene in a timely fashion on risks of rapidly deteriorating balance sheets, according to a document seen by Dow Jones Newswires.
"It's all about regulators' right to intervene," said Jeanette Schwamberger, a spokeswoman at the finance ministry. "That's what the coalition committee has agreed on," she said.
According to the document, which forms the basis of the draft bill, financial watchdog BaFin could force banks to raise their capital ratios, or the capital they hold against risky assets.
Despite some improvements following the launch of the government's EUR500 billion SoFFin financial markets stabilization fund, the capitalization of German banks has often been behind that of their U.K. and U.S. peers.
The German cabinet is expected to approve the draft bill March 25, and legislation could be implemented before the parliament's summer break, the spokeswoman said.
-By Nina Koeppen and Andreas Kissler, Dow Jones Newswires; +49 69 2972 5509; nina.koeppen@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=YP4aEomnnr3fVmx9HToUdQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
March 18, 2009 10:07 ET (14:07 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 10 07 AM EDT 03-18-09
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1 comment:
You make a good point, but germans have flown the coupe decades ago. It's the u.s. I'm more concerned with, thanks for the info anyway, we are unfortunately connected.
Avi Cohen
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