10. November 2014

Private banks' president: banking union strengthens financial marketplace – investment necessary for more growth in Europe

“The launch of banking union has made the European financial marketplace more stable,” said Jürgen Fitschen, President of the Association of German Banks and Co-Chief Executive Officer of Deutsche Bank AG, today. “The transfer of supervision to the ECB is a milestone.” The next step in banking union, the Single Resolution Fund (SRF), was already being actively prepared. Together with the bail-in tool (creditor participation), the SRF would protect taxpayers’ money better in future in a crisis.

However, when it came to filling up the SRF, the same tax rules should apply to banks in all countries. “If the bank levy is tax-deductible in, for example, France, Spain and Ireland, this should be the case in Germany, too,” Mr Fitschen stressed. “Otherwise we would face a serious competitive handicap.”

The new European Commission’s idea of creating a capital markets union alongside banking union and in this way further developing the single European market for financial instruments went in the right direction. “The private banks in Germany are open to the idea of a capital markets union,” Mr Fitschen said.

“A stable banking sector is vital for economic growth in Europe,” he added. At the same time, however, the economy needed the right framework conditions. So investment in infrastructure was necessary in Germany as well.  

The private banks therefore welcomed the German government’s initiative to encourage public investment also with the help of private capital. To allow this, all those involved needed both planning and legal certainty in particular. Besides direct investment, removing bureaucratic obstacles to investment was a priority. “If we manage to take the right steps, I am confident we can strengthen Germany’s and Europe’s competitiveness,” Mr Fitschen concluded.

Thomas Schlüter
Press Spokesman
Telephone: +49 30 1663 1230
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