Position of the Association of German Banks on the Bundesrat's approval of the Restructuring Act
Position
The Association of German Banks welcomes the Bundesrat's endorsement of the Restructuring Act. The new rules for the orderly resolution of banks which pose a threat to financial stability close a major gap in the German legal system. It is a positive development that the Bundesrat has recognised the need for the rules to apply to the entire banking industry and for no group of banks to be excluded. Germany will now be able to combat systemic crises more effectively.
It is now important, however, particularly in view of the levy to be imposed on German banks, to work towards internationally coordinated rules of this kind. Otherwise, German banks may face considerable competitive disadvantages in the international marketplace.
Berlin, 26 November 2010
