Watch VideoPlay Video
Germany's government has approved a financial bill that places a new tax on banks, to help troubled financial institutions ward off future crises. The move follows similar pledges made by France and the U.K.
A German government spokesman says the bill seeks to restructure ailing banks and reform Germany's financial framework. It's also hoped the new legislation can handle the failure of major banks "without endangering the stability of the entire financial system."
The draft law requires banks to make an annual contribution totaling about 1.3 billion euro. The levy will go towards funding any future bank bailouts, without using taxpayers' money. The legislation has been passed to the German parliament for debate.
European countries sought at the last G-20 meeting to establish an international bank levy, but were met with setbacks. It's expected EU finance ministers will discuss the possibility of a Europe-wide levy at a meeting next month. Germany, France and the U.K. hope to present a coordinated policy on the banking levy at the next G-20 summit in Seoul, in November.