Critic sees cause for optimism
The German Banking Association (Bundesverband deutscher Banken – BDB) has been a harsh critic of the slow pace of reform of the financial sector. However, over the past year the government has managed to push through several new laws. Manfred Weber (right), the BDB's CEO, tells Ben Aris there is much left to do but he is quietly optimistic that things are moving in the right direction. Reforms are moving slowly while everyone agrees that reform is needed. Is enough being done fast enough?
There have been a lot of changes over the last year from tax cuts to changes in the banking laws, but a lot of these changes are so far only visible on the surface yet.
July this year will bring more big changes when the Landesbanken's guarantee is abolished and they have been under pressures to adjust to a totally new world. I would say to them "welcome to the market".
The removal of the guarantee is only part of a bigger picture as the Basle II reform is also on its way.