Frankfurt, Berlin Public laws have been heating up the financial sector for billions of months in restructuring the security system of savings banks and Landesbanken. However, after intense deliberations, a solution is now emerging as to how the institutions intend to implement the reforms sought by the banking supervisory authorities.
The European Central Bank (ECB) and the German financial supervisory authority BaFin are demanding that in addition to the funds already available in the security system, institutions should pay additional funds into a new pot to protect sick institutions from 2025.
By current calculations, that’s about 5.2 billion euros, as several people familiar with the subject told Handelsblatt. The agreement that has now been found suggests that the Savings Bank and Landesbanken contribute approximately 2.6 billion euros each. This should be formally decided at a meeting of members of the German Savings Bank and Giro Association (DSGV) in Berlin on Friday, it was said in financial circles.
Get access to this and every other article
Free for 4 weeks on the web and in our app.
Reader. Organizer. General creator. Zombie fanatic. Alcohol advocate. Food junkie. Bacon ninja.