Statement by Professor Axel A Weber on the package of measures adopted by the Federal Government

The crisis in the financial markets has made it necessary to take extraordinary measures. Consequently, the Federal Government today announced a comprehensive package of measures.

The Deutsche Bundesbank welcomes this package of measures as a sound basis for stabilising the German financial system and alleviating the crisis of confidence in the financial markets. It is a temporary offer of assistance designed to help the banks to initiate their own remedial measures so that they can resume their normal business activities – including granting credit to the general public and to enterprises.

Banks can now once again lend each other money with reinvigorated confidence, as the Federal Government is bolstering the institutions and their business through capital measures and guarantees. At the same time, the general public can trust in the security of their deposits as government guarantees have been announced for these, too.

The Bundesbank participated as an advisor to the Federal Government in drawing up the package of measures. It will provide operational support to the activities of the envisaged financial market stabilisation fund and actively cooperate to help further stabilise the financial markets.