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Germany's cabinet has agreed on a draft law for maintaining an emergency reserve to help German banks that get into trouble while a pan-European agency is being built up, a government spokesman said on Wednesday.
Germany set up its national agency, called the Restructuring Fund, in 2011. From 2011 to 2014, German banks paid 2.3 billion euros into that Restructuring Fund.
Under the new rules, Germany would hold on to those funds rather than giving them back to the banks or using them to offset bank contributions to the new pan-European fund, as called for by German banking associations.
The draft law will give German banks an extra buffer during a time in which the European agency's funds will be relatively small.