German lenders urge resistance to faster build-up of bank resolution fund
Sticking with the fund’s proposed 10-year buildup while merging its national compartments after five years would make it easier to unload lenders’ accumulated bad assets at Germany’s expense, the five main German bank lobbies said in a letter to Schaeuble dated February 5. They also rejected an ECB- backed proposal to cut the build-up to five years.
Speeding up joint responsibility under the fund “would give participating member states the opportunity to move legacy burdens that originated under national responsibility to the European level at an early stage”, the bank lobbies said. “A pooling of fiscal liability for these legacy burdens should urgently be excluded.”
