Throughout its history, dating from the 16th century, private banks in Germany have experienced two world wars, the Great Depression and financial crisis, but now face a different challenge – new regulations. M.M. Warburg & Co., Berenberg Bank, Bankhaus Lampe, Hauck & Aufhaeuser Privatbankiers and B. Metzler seel. Sohn & Co., The largest private banks in the country, argue that their conservative strategies are translated them through the credit crunch. However, their performance will not exempt them from the proposed new regulations designed to improve market stability and to limit the risks of their larger public competitors Deutsche Bank AG and UBS AG. “All banks, no matter what wine to bring the crisis will be affected,” says Van Volker Ruth, a partner at Hauck & Aufhaeuser. “For the moment it is unclear how regulators will distinguish between banks that had a healthy policy and those who have followed higher-risk models,” he added. On August 25 the cabinet of Germany’s Chancellor Angela Merkel approved measures requiring banks to Germany invest in the fund, designed to shift the cost to rescue troubled financial institutions in future financial crises from taxpayers to the banking system. According to the draft banks will calculate the amounts to be imported into the new fund, according to their assets and risks incurred. According to government estimates in the new year fund will come around 1.3 billion. Under the new regulations proposed by the Basel Committee on Banking Supervision (BCBS), private banks may be faced with higher capital adequacy requirements and liquidity as well as new restrictions on how many can borrow. In BCBS members of regulatory authorities and central banks from 27 countries. To fulfill the requirements of regulators, banks may be forced to devote more funds to carry out transactions, information technology and its employees, which will affect its profit.
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