MIL OSI Translation. Region: Germany / Deutschland –
Source: CDU CSU
Mister President! Ladies and gentlemen! The grand coalition can crisis. Twelve years ago the financial crisis was the subject of this Parliament and the Risk Reduction Act is also a product of the financial crisis. We proved at the time: We act. Banks’ equity ratios are significantly higher than they were in 2008. And, dear Minister of Finance, the step that we are now taking with the Risk Reduction Act is another step in the right direction. We need to reduce the risks on bank balance sheets.
(Applause from members of the CDU / CSU and the SPD)
The aim, ladies and gentlemen, is that no taxpayers’ euro will ever again go to the rescue of banks. And that is difficult – we know that – because the banks are currently making little money and are therefore not able to build up much equity.
But what is equity actually? Perhaps you also know her: Antonia, 32 years old, would like to finance a house with her partner. The house costs 300,000 euros. And the bank advisor says: man, you have to bring 20 percent equity, so 60,000 euros. – Why is 20 percent equity so important? Because the rate is lower, the more equity Antonia raises. But now Antonia only has 20,000 euros – 40,000 euros are missing. Then she gets what is known as supplementary capital; with her grandmother, in the whole family, she collects that together. She ended up with 60,000 euros and Antonia can afford the house. She moves into the new house with her partner, later also the future children. That means: Equity promotes loan disbursement.
This is how it works with banks: the more equity banks have, the more loans they can issue. Now there is also the issue of supplementary capital at banks. That’s not Grandma now; that’s a few small bank reserves that you have. We have to take a close look at whether we have found the right answer with the present draft of the Risk Reduction Act, whether we should eliminate everything or whether we should define exactly what supplementary capital will be necessary in the future. But one thing is clear: what banks in Germany say to Antonia must also apply to banks. More equity capital when issuing loans – that is the right approach, and we will take it with this law.
(Applause from the CDU / CSU and members of the SPD)
As a grand coalition, dear colleagues, we have also put the issue of savings banks, Volksbanks and small banks on our agenda. Because it is not the big banks that are there. It is the Sparkasse that is involved locally. It is the Volksbank that kept its doors open during the corona pandemic so that the cash supply can take place. That is why it is very clear – what the colleague mentioned earlier on the subject of proportionality, I would like to translate again -: For small savings banks, for small Volksbanken, for small private banks different rules must apply than for large banks. We are the parties of those who support the people on site, who thank the savings banks, who thank the bank advisor at the counter at the Volksbank.
(Dr. Florian Toncar [FDP]: But tighten credit regulations!)
You kept the doors open in the corona pandemic, and we are also by your side with the Risk Reduction Act and will demand what we wrote in the coalition agreement.
(Applause from the CDU / CSU – Jan Korte [DIE LINKE]: Sure, yes! – Dr. Marco Buschmann [FDP]: We will see that in the second, third reading!)
And then in the draft of the federal government, which was sent to us as parliament, there is a term that always triggers a bit of allergic reactions: That is the subject of deposit insurance. We’ll look at that very carefully. We have a special system in Germany. Antonia went to her bank, but she could also have gone to the Sparkasse or Volksbank. This system, the tripartite banking system in Germany with Volksbanken, Sparkassen and private banks, is unique in Europe. And if we want a European answer to the question of banking regulation, then we must also look at the special situation in Germany. And the special situation in Germany is: institutional security for Volksbanks and institutional security for savings banks. We want to preserve it, and that’s why we will take a very close look at the subject of deposit insurance.
(Applause from the CDU / CSU)
In conclusion, we will not only deal properly with the 2008 crisis in the grand coalition, but we will also shape the future. We want that as the CDU / CSU parliamentary group. That is why we continue on the path. We will reduce the risks; In view of the corona pandemic, we want to get rid of the risks.
Thanks again to all those advisors – and I expressly say this on behalf of the Union parliamentary group – who provided our population with cash in times of the pandemic! It was not easy. They are systemically important and we stand by their side.
Thank you very much.
(Applause from the CDU / CSU)
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.