BERLIN, Feb 6 (Reuters) - About 10 to twelve German banks will be affected by draft legislation requiring lenders to separate their risky proprietary trading activities from retail banking, German Finance Minister Wolfgang Schaeuble said on Wednesday.
“On the basis of the numbers from 2011, 10 to twelve banks will be affected in Germany,” Schaeuble told reporters after the cabinet approved a draft law to regulate Germany’s banking sector. He declined to name the institutions.
Under the draft law, outsourcing such activities becomes necessary only when assets associated with proprietary trading exceed 100 billion euros or 20 percent of the bank’s balance sheet. (Reporting by Annika Breidthardt; edited by Madeline Chambers)