BFederal Minister of Finance Christian Lindner (FDP) does not see the stability of the German financial system being endangered by the price collapses at the Swiss Credit Suisse and several US banks. “We can say very clearly: the German credit system – private banks, savings banks, cooperative institutes – is stable,” said Lindner on Wednesday evening on the ARD program “Maischberger”.
The federal government is in constant and intensive exchange with all those involved, added Lindner. With the Federal Financial Supervisory Authority (BaFin), Germany has an efficient financial supervisory authority. “And we have the Bundesbank, which also has a tradition of stability policy,” emphasized the finance minister.
German banks close deep in the red
There are currently major concerns about international banking, with several financial institutions in the US and Europe coming under pressure. Credit Suisse shares were in free fall in Switzerland on Wednesday. Two banks in the USA had already gone bankrupt this week, which fueled fears of contagion – as a result, many banks in Europe collapsed. The share prices of Deutsche Bank and Commerzbank closed on Wednesday down around nine percent.
The Swiss National Bank (SNB) assured Credit Suisse that it would provide liquidity if required. The central bank announced this on Wednesday evening together with the Swiss financial market supervisory authority Finma. There is currently no evidence of a direct risk of contagion for Swiss institutions due to the problems of US banks, it said. Crédit Suisse also tried to reassure bank customers. It is a “very well capitalized bank,” emphasized the head of Crédit Suisse Switzerland, André Helfenstein, in an interview with the Swiss broadcaster “Blick TV”.
According to a newspaper report, the Bank of England (BoE) called a crisis meeting in view of the worsening crisis at the major Swiss bank. The BoE has held talks with international partners to allay growing concerns about the bank, The Telegraph newspaper reported.
#Lindner #emphasizes #stability #German #credit #system