The Association of Foreign Banks in Germany (VAB) has made proposals to strengthen Germany as a financial hub. At recent press conference in Frankfurt, Tobias Vogel, head of the association and CEO of UBS Europe, called for the consistent implementation of EU regulations, an ambitious reduction in bureaucracy, and progress on Capital Markets Union. He also announced a change of name for the association: In future, the VAB will be called the „Association of International Banks in Germany“.

One area of focus is the demand for a 1:1 transposition of the EU Capital Requirements Directive into German law. „We are clearly calling on the German government to implement CRD VI in Germany swiftly and without any special cuts. Anything else jeopardises the financial centre,“ explained Vogel. Special national approaches would reduce planning certainty for internationally active banks, and could have a negative impact on their choice of location – especially those from third countries such as the USA or Switzerland. „Germany does not need a special approach - it needs a 1:1 implementation of the EU rules,“ Vogel stressed.

A second focus is on reducing bureaucracy. The association presented a position paper with 44 specific measures aimed at improving working conditions for international banks, and making Germany more competitive as a business location.

The banking association's proposals range from the reduction of excessive reporting and disclosure obligations, to the more practical categorisation of wealthy clients as professional investors, and the simplification of tax procedures – particularly with regard to capital gains tax refunds.

The aim is also to facilitate more IPOs in Germany and to strengthen trading as a whole. To this end, the association called for better tax and regulatory framework conditions, among other things. Foreign companies dominate business in German share offerings.

The topic of the Savings and Investment Union/Capital Markets Union was also addressed. The association spoke out in favour of a harmonised European regulatory framework and uniform passporting in order to facilitate cross-border capital flows. However it opposes the creation of a new centralised EU regulatory authority. „A capital markets union needs more freedom for investors. Instead of paternalism, we are calling for standardised rules and more personal responsibility,“ said Vogel. Bold reforms are needed, particularly in the area of private pension provision, such as funded models with real opportunities for returns.

By changing its name to „Association of International Banks“, the association is taking account of reality: many of its members have German licences but a global background. The renaming is intended to reflect the international orientation of its members.

„Internationality is a reality – that's why we will call ourselves the Association of International Banks in future,“ Vogel concluded. The number of foreign banks in Germany remains at 171, 63 of which are subsidiaries.