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04 November 2014

Reuters: French, German resolution fund bill to be 15 billion euros per country


"We'll have a system of equal weights between France and Germany, even if Germany has a lot of small banks and German authorities want to contribute less, and we have large banks," Sapin told journalists.

The 55 billion euro common fund established in March, known as the Single Resolution Mechanism, is designed to be a pan-European bailout fund made up of levies on banks built up over eight years.

Although Sapin said the French government was working with banks toward the idea of making some of their contributions tax deductible, large French banks were concerned they could end up footing the biggest bill if contributions were set according to scale.

Francois Perol, chairman of France's cooperative lender BPCE and the head of a French banking association, said that his association hoped to press the French government to lower the contribution amount.

"It seems that the (French banks') share of 31 percent in the fund is exaggerated compared with the risk that we represent," Perol told journalists on Tuesday.

BNP Paribas along with Groupe Credit Agricole, Societe Generale and BPCE, parent of investment bank Natixis, are among Europe's biggest banks in terms of assets. Germany has a higher proportion of smaller banks, even though it has Europe's biggest economy.

Full article on Reuters



© Reuters


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