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Buba's Weber Sees More Write-Downs in 2008

Germany's banks can expect to see further write-downs in 2008, the head of the country's central bank said on Tuesday.

"I think that we will see the biggest part of the turbulence in the audited results for the 2007 year, but certainly not all of it," Weber told Germany's Focus Money magazine in an interview released in advance of publication on Wednesday.

Weber said banks were to blame for the ructions in the financial markets over the last half year, rather than monetary policy, because they pursued higher yields to the detriment of good risk management, while also lacking transparency and developing complex financial products.

But Weber played down the chances of a credit crunch.

"Competition will ensure that companies continue to obtain loans at favorable interest rates," he said.

"The earnings situation at German companies is stronger now than it has been in a long time. Profit margins are high," he added.