BERLIN, Jan 28 (Reuters) - Germany is working on a draft law on reducing risks in the banking sector which foresees the participation of creditors and shareholders in the event of a bankruptcy, the finance ministry said on Tuesday.
The draft law provides for big banks to put aside 8% of their balance sheet total as a buffer during a crisis, the finance ministry said.
The draft law is meant to implement parts of a wider European Union package of banking rules, which was agreed by member states last year, into national law.
Large banks will also have to put their refinancing on a more long-term basis, the ministry said, adding that smaller banks will be relieved of their disclosure requirements and also of the new liquidity requirements. (Reporting by Christian Kraemer Writing by Michael Nienaber Editing by Joseph Nasr)