Germany Cleans Up Its Banking System
German finance minister, Peer Steinbrueck, has made a plan to remove toxic assets from the balance sheets of banks based on government funding for financial institutions, in order to create so-called “bad banks”, says Bloomberg.
Ministry of Finance has submitted to the Chancellor Angela Merkel, and officials of the administration and industry to decided on the details of the plan on April 21.
Under the plan, banks would set up separate divisions, supported by government funds of 200 billion, in which they will be able to transfer assets which can’t be sold, said Steinbrueck.