When banks get into trouble, taxpayers are often asked to pay to save them. A crisis fund is intended to remedy the situation. Many German banks are also involved.
Germany’s banks have to pay a total of 2.63 billion euros in the current year to the European crisis pot to provide for possible difficulties. This was announced by the financial regulator Bafin as the national resolution authority for the European resolution fund SRF (Single Resolution Fund) on Monday.
The money goes into the common European crisis fund. This pot serves as a buffer for possible difficulties at financial institutions. The aim is for banks to make provisions for emergencies themselves, so that taxpayers don’t have to step in in an emergency. According to the latest information, around 77.6 billion euros are now in the pot. The fund will thus reach a target volume of at least one percent of the covered deposits from all credit institutions in the member states participating in the banking union by the end of 2023.
Among the 1,265 institutions in Germany that are subject to contributions, the large and regional banks have to shoulder the majority of the German total for the 2023 contribution year, at EUR 1.55 billion. The Landesbanken and the central institutes of the savings bank and cooperative sector contribute a total of 433 million euros. The remainder is divided between savings banks (306 million euros), cooperative banks (192 million euros) and mortgage banks and other specialist institutes (153 million euros).
Bafin on the bank levy
Source: Stern
