Association of German Banks on the German Law to Stabilise the Financial Markets
Key step towards normalisation of the markets

17 October 2008 - Germany's private banks welcome the Law to Stabilise the Financial Markets, which was passed today by the Bundestag. “With this extensive package of measures, policymakers have set the course for a normalisation of the situation in the financial markets,” stated Manfred Weber, Chief Executive of the Association of German Banks.

“The private banks thank the German government, Bundestag and Bundesrat for their concerted, decisive and swift action. Policymakers have now established an environment in which confidence can return to the financial markets and access to credit for companies and households can be guaranteed in the long term,” stressed Weber.

He said that the banks wanted to contribute to the success of the agreed measures and felt a responsibility to remedy mistakes which had been made in the past. Many of the steps needed would have to be addressed and implemented by market participants. “We are well aware that this is the only way to restore the confidence which has been lost,” declared Weber.

Since the policymakers' measures have, moreover, been coordinated at international level, the association also believes there is a good chance that the effects of the financial turmoil on the real economy, especially in Germany, will be limited.