FRANKFURT (Reuters)—The vice president of Germany's Bundesbank has proposed setting limits for how much banks can lend to governments and backing such exposures with adequate capital to make them less reliant on taxpayers' help in crisis times.
Sabine Lautenschlaeger, who is also a member of the Basel Committee on Banking Supervision which wrote the new global banking standards known as Basel III, told Reuters current regulation was setting the wrong incentives.
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