Germany secured a partial victory in its bid to shield itssmaller banks from paying fees to the euro area's new crisis fund,as the European Commission set a cap on the contributions.

In the system laid out today by the commission, the EuropeanUnion's (EU's) executive arm, larger banks will pay the lion'sshare of levies to fill the planned 55 billion-euro (US$70 billion)common resolution fund based on their size and risk-taking. Smallerbanks will pay according to a scale of flat fees.

“These new rules pave the way for an operational SingleResolution Fund,” Michel Barnier, the EU's financial-serviceschief, said by email. “The approach chosen is fair, as each bankwill contribute in proportion to its size and risk profile. It isalso proportionate, as the smallest banks have their own adjustedregime of contributions.”