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German banks urge clarity on contingent bond rules 

January 13, 2014

Germany's commercial banks urged regulators on Friday to quickly clarify whether they can issue billions of euros in bonds to fullfil new capital requirements aimed at limiting the damage from future financial crises.

German lenders are still waiting for a green light from national authorities before issuing the bonds, while foreign rivals have stolen a march in tapping investors to bolster their capital safety buffers to meet the tougher international banking standards known as Basel III.

Among the lenders, Deutsche Bank alone plans to issue 5 billion euros in bonds by the end of 2015.

"For Germany as a banking centre it is high time that the authorities create legal certainty regarding additional core capital," Michael Kemmer, managing director of the BDB banking association, told Reuters.

Read more: Reuters

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