LBBW, which can provide banking services to retail customers, they have performed poorly during the past five years (see chart).

ECONOMIST: German Landesbanks

LBBW's chief executive, believes that the provision of liquidity by Landesbanken to their local Sparkassen should be regarded as similar to the activities of a central bank, and thus enjoy a zero risk weight.

ECONOMIST: German public-sector banks: Slow progress | The