BRUSSELS, 19 April 2016 – German Savings Banks Association DSGV Presdient Georg Fahrenschon said on 16 April welcomed the move towards more proportionality and better regulation for small and medium-sized banks.
Fahrenschon, who leads the ESBG German member, made the statement after the German Finance Minister Wolfgang Schäuble demanded appropriate regulation. Fahrenschon emphasized that regulation according to size, business model and risk content is "urgently required". The capital requirements under Basel III are tailored for large international banks. This is why the framework needs to be adapted for smaller credit institutions. To promote better financing conditions the SME scaling factor should be maintained. This would also be to the customer's benefit. The objective is to discharge small and medium-sized institutions.
Together with the British Chancellor of the Exchequer George Osborne, German minister Schäuble asked the European Commission and the Council of Europe to maintain the principle of proportionality. They support the idea of a "Small Banking Box" based on the American model. Jonathan Hill, the commissioner for financial markets, wants to present proposals for the revision of these regulatory conditions until the end of this year.
>> See related story that appeared Börsen-Zeitung
>> Learn more about ESBG position on better regulation
>> EBA BSG Proportionaility Paper