German Banks Face Higher Capital Buffer Amid Low Profitability
Felix Hufeld, president of BaFin, pauses during a Bloomberg Television interview in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
German banks have long suffered from low profitability. A new capital buffer set to be adopted by regulators isn’t going to help.
A financial stability committee on Monday recommended an additional capital requirement for German banks as it seeks to force lenders to build up defenses before the next downturn.