WASHINGTON (Dow Jones) – The International Monetary Fund (IMF) has advised Germany to a consolidation of its regional banks.
"Getting a major consolidation of regional banks – possibly at a savings bank central institution – must be a priority," says the final report published on Tuesday on the Article IV consultations. All the remaining institutions would need to be monitored effectively and have a transparent business models and a revised ownership structure. "Despite some restructuring measures will be taken much more needs to ensure that the regional banks did not remain a source of financial instability," said the IMF.
In addition, the Washington-based organization, welcomed the plan to consolidate the Federal Government, the banking supervision under the umbrella of the Bundesbank. The transfer of supervisory powers to the Bundesbank should include because of their strong ties in Germany, both banks and insurance companies. This would also improve the ability of the Bundesbank, Germany represented in the planned European Systemic Risk board.
) The Federal Financial Supervisory Authority (from the perspective of the IMF would oversee the compliance of market rules and given the responsibility for investment companies, markets and consumer protection for the entire financial sector.
Website: www.imf.org
By Hans-Bentzien, Dow Jones Newswires, +49 (0) 69 29725 300,
Hans.Bentzien @ dowjones.com
DJG / hab / apo / ISJ
