Appropriate regulation, differentiated according to risk content and size, which takes account of their importance for the economy and for society – this is what savings banks and co-operative banks called in Berlin.
“We need better, differentiated regulation. Large, internationally operating banking groups need to be closely monitored as they pose a major risk of contagion. However, for traditional retail banks of a moderate size and with a simple business model, slimmed-down rules are sufficient to ensure the same level of security. For this reason, we advocate a “small and simple banking box” for banking regulation” said Georg Fahrenschon, President of the German Savings Banks Association (DSGV).
“Our motto is stability through diversity”, said Uwe Fröhlich, President of the Federal Association of German Co-operative Banks (BVR). “In the upcoming regulatory projects such as the implementation of Basel III in the CRR/CRD review, proportionality for small and medium-sized banks must be a key approach.”
“The savings and retail banks that are members of the WSBI play a crucial role in sustainable economic growth in local communities. They are an important force when it comes to economic participation, whether through a local bank’s connection with households or local businesses”, said Heinrich Haasis, Chairman of the World Savings Banks Institute and Chairman of the Savings Banks Foundation for International Co-operation.
Gerhard Hoffmann, President of the European Association of Co-operative Banks (EACB) emphasised: “Rules for banks must be effective, but the European Union must also attach greater importance to efficiency in regulation. Much would be gained if financial stability could be achieved with lower administrative expense, and hence at a lower cost for national economies.”
Full press release
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