German banks chief raises fund doubts

THE head of Germany’s Central Bank has expressed serious doubt over the potential effectiveness of the proposed European Stabilisation Fund, which is aimed at reducing future failings in the international banking sector.

Bundesbank president, Axel Weber – who is also a European Central Bank (ECB) council member – was in Dublin yesterday addressing the annual lunch of the IBEC-affiliated Financial Services Ireland representative body.

In his speech, Mr Weber said the fund – a quasi-International Monetary Fund proposed by Germany – “has major shortcomings”.