Federal Cabinet passes law on transfer of old funds from bank restructuring

The Federal Cabinet today approved the draft of a law to transfer the old funds of the Restructuring Fund to the Financial Market Stabilization Fund (Restructuring Fund Transfer Act).

The law provides for the transfer of the old funds of the Restructuring Fund (RSF) to the Financial Market Stabilization Fund (FMS) to partially repay the shortfall that has accumulated there. This will significantly reduce the burden on taxpayers at federal and state level from the financial market crisis. The banks will contribute to the costs of financial market stabilization that have arisen at federal and state level as a result of the financial market crisis. The transfer of the old funds to the FMS reduces the current deficit of 21.6 billion EUR by the end of 2023 by around 2.3 billion EUR.

In addition, the ban on deducting business expenses for tax purposes for any bank levies to be imposed from 2024 onwards will be lifted. This will lead to a levelling of the competitive conditions in the EU and is therefore positive for Germany as a financial centre.

Further information on Financial Market Stabilization Fund can be found on the Home of the Federal Republic of Germany Finance Agency GmbH.