German Banks Allowed to Use Sparkasse Name if They Fund Charity Projects
Charity News Online
The government has crafted a compromise in the Sparkasse name debate that would allow private banks to refer to themselves as savings banks provided they use their earnings for charitable causes, the Financial Times Deutschland reported.The government plans to present the new proposal to the European Commission on Monday.
Under current German law, the 'Sparkasse' (savings bank) title can only be used by publicly-owned banks. The Commission has told Germany it must ease this restriction, arguing that it contravenes EU laws on the freedom of establishment and the free movement of capital, as it prevents private banks and investors from benefiting from the "goodwill value" that the Sparkasse name carries.
Under the new proposal, private banks would be allowed to savings banks and retain the 'sparkassen' name, provided they used some or all of their profits for charitable purposes, the newspaper added.
charity, Germany
Charity News Online
The government has crafted a compromise in the Sparkasse name debate that would allow private banks to refer to themselves as savings banks provided they use their earnings for charitable causes, the Financial Times Deutschland reported.The government plans to present the new proposal to the European Commission on Monday.
Under current German law, the 'Sparkasse' (savings bank) title can only be used by publicly-owned banks. The Commission has told Germany it must ease this restriction, arguing that it contravenes EU laws on the freedom of establishment and the free movement of capital, as it prevents private banks and investors from benefiting from the "goodwill value" that the Sparkasse name carries.
Under the new proposal, private banks would be allowed to savings banks and retain the 'sparkassen' name, provided they used some or all of their profits for charitable purposes, the newspaper added.
charity, Germany
posted by Lisa Vronskaya at 5:42 PM
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