New Basel rules split Germany's bankers
While some bankers said the Basel III capital rules, due to be finalized on Sunday were unlikely to create a new credit crunch, others offered a more pessimistic view, warning that tougher times could be in store for banks and the wider economy. "I presume that tensions will rise as demand for credit rises," said Jürget Fitschen, a board member of Deutsche Bank. "I'm not convinced there won't be a squeeze on demand for credit." Mr Fitschen's views were echoed by Heinrich Haasis, head of the German Savings Bank Association, who warned that a large increase in bank capital ratios could lead to the withdrawal of hundreds of billions of euros of lending capacity.