Germany disagrees with new banking standards: regulator

27th July 2010, Comments 0 comments

Germany is at odds with other countries over proposed new rules for banks in the wake of the financial crisis, a spokeswoman for Germany's national regulator BaFin told AFP on Tuesday.

The world's top central bankers and regulators said on Monday that they had reached broad agreement on new standards aimed at ensuring that banks have sufficient capital, but that one country still had objections.

"This country is Germany," the BaFin spokeswoman said.

A government source in Berlin said that Germany's objections concerned a proposed new classification of capital which could put the country's public owned savings banks and regional banks at a disadvantage.

The new recommendations, known as Basel III and hammered out by the Basel Committee on Banking Supervision, are due to be submitted to a summit of the Group of 20 top economies in Seoul in November for approval.

The government source stressed that Berlin's objections were "structural" and not "in principle."

"This does not mean that we are blocking. We are fully determined to reach a deal in Seoul," the source told AFP.

© 2010 AFP

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