The German government on
Wednesday unveiled tougher new banking rules which it hopes will help prevent
financial crises in the future and make banks bear more of the responsibility
themselves.
The rule will apply to institutions where high-risk
operations such as high-frequency trading or hedge-fund financing make up
either 20 percent of the balance sheet value or surpass €100 billion ($135
billion) in value.
The banks concerned will be required to transfer their risky businesses into legally and financially separate units.
Schäuble estimated that between 10 and 12 banks in Germany fulfil these criteria and would therefore be affected.
He declined to name any, but the rules will certainly affect the country's two biggest banks, Deutsche Bank and Commerzbank, as well as regional banking giant Landesbank Baden-Württemberg LBBW.
The law also requires banks to draw up so-called "wills" or emergency plans for restructuring or winding down once they get into financial difficulty.
The banks concerned will be required to transfer their risky businesses into legally and financially separate units.
Schäuble estimated that between 10 and 12 banks in Germany fulfil these criteria and would therefore be affected.
He declined to name any, but the rules will certainly affect the country's two biggest banks, Deutsche Bank and Commerzbank, as well as regional banking giant Landesbank Baden-Württemberg LBBW.
The law also requires banks to draw up so-called "wills" or emergency plans for restructuring or winding down once they get into financial difficulty.
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