The German banking association has reached the conclusion that its members will be internationally uncompetitive as a result of strict policies imposed by its policymakers above those imposed by international regulators.
On top of international capital requirements, German banks face a bank levy, the new funding requirements for deposit insurance and a planned tax on financial activities. The rules on bonus payments are also significantly hampering the banks' competitiveness. In short, owing to national legislation, the banks are no longer internationally competitive. On the contrary, they are at a huge disadvantage.
Healthy profits are necessary if the banks are to build capital, fund German economic growth, promote innovation and retain jobs - only then can the future regulatory requirements be met and business for the future be developed.
For years German banks have been falling increasingly further behind their international counterparts. The German economy - especially its global business - needs efficient German banks. This has to be in the national interest. They call on policymakers to acknowledge this and stand firmly behind German banks.
© BDB - Bundesverband Deutscher Banken
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