April 28, 2014 / 7:27 AM / 3 years ago

German banks to pay 1.9 bln euro a year for resolution fund-paper

2 Min Read

BERLIN, April 28 (Reuters) - German banks will pay about 1.9 billion euros a year into a new European bank restructuring fund, more than three times the amount they cough up currently, with large banks footing the bulk of the bill, according to a newspaper report on Monday.

Citing government sources, Handelsblatt said in its Monday edition that a rule whereby banks do not need to pay more than 20 percent of their annual profit into a current national fund would be dropped for the 55 billion euro back-up fund.

This rule spared German banks roughly 1.3 billion euros of levies in 2011 alone.

European leaders have decided to complete a banking union with an agency to shut failing euro zone banks and a common 55 billion euro back-up fund set up over eight years. The German government has said before the costs for banks would be high.

To protect very small German banks, Finance Minister Wolfgang Schaeuble would likely lobby in Brussels for a threshold of 500 million in total assets below which banks would not have to contribute to the fund. That limit is up from 300 million in the current national fund.

The German finance ministry declined comment. (Reporting by Annika Breidthardt; Editing by Stephen Brown)

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