Thursday, September 9, 2010

ECB: German Banks Are Undercapitalized

Juergen Stark, chief economist of the European Central Bank, said at a meeting with the head of Unions Parliamentary Group in Berlin, that German banks are undercapitalized.

"He was referring largely to savings banks and regional banks (Sparkassen und Landesbanken). Accordingly, called for privatization of the German savings banks, based on the successful Spanish model. The ECB declined to comment.

J├╝rgen Stark’s comments feed doubts about the local banking system.This is even more surprising given the positive results for the regional banks in the stress test of the EU in July, in which the ECNB were heavily involved".

"Germany should make concessions regarding Basel III. US is betting that German banking system won't be able to stay in current form after Basel III. Fears slight inflation trend in US from Obama's stimulus program" (FxStreet)

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics