BERLIN (MNI) – The German Finance Ministry on Monday welcomed the
agreement on the Basel III bank capital rules, saying it did not
expect that the stiffer regulation to cause a credit crunch.

“We don’t see the risk of a new credit crunch from this
regulation,” ministry spokesman Michael Offer said at a regular
government press conference here.

“The finance minister welcomes this agreement very much…and he
does not believe that it will overburden the financial sector,” Offer
said. With its long transition period, the agreement secures the
interests and structures of the German banking system, he reckoned.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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