The German Finance Ministry Friday lauded German banks and insurers' commitment to self-regulation on bonuses payments, and said it will follow this up with additional rule changes.

"It is a positive signal that the largest German credit institutes and insurers have committed themselves in this declaration to apply the new standards for sustainable remuneration already," Schaeuble said in a statement.

The ministry said it is pursuing a three-step approach to bankers' bonuses, in line with the bonus payment agreement of the Group of 20 nations to defer them over several years and to implement clawback structures that allow bonus payments to be reduced if the long-term results of investment decisions turn sour.

A first step is the self-regulation of Germany's leading banks and insurers. In a second step, financial services regulator BaFin will send a letter to banks and insurers on supervisory rules by the end of 2009, at the request of the Finance Ministry. Thirdly, the Finance Ministry will in spring 2010 draft an oversight law to change Germany's Banking Law and the Law on the Supervision of Insurance Companies.

The Finance Ministry couldn't be reached to give more details on the plans.

-By Andrea Thomas, Dow Jones Newswires; +49 30-2888-4126; andrea.thomas@dowjones.com
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