German regulator calls on banks to increase risk provisions

The president of Germany’s financial regulator, Mark Branson, on Monday called on banks to increase their risk provisions while earnings are strong.

Branson, speaking at a conference in Frankfurt, praised U.S. banks for setting aside “as much as they could”.

“Now is the time” for banks to set aside funds for a rainy day, while they are earning well, he said.

Germany’s top banks during past weeks reported better-than-expected profit. Some did increase their risk provisions somewhat.

Separately, Branson said that he doesn’t see contagion to financial stability in Germany as a result of recent problems in the crytocurrency market.