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Moody's upgrades German bank system to stable on government role

Picture taken on Apr 28, 2015, shows the logo of German bank Commerzbank in front of the company's headquarters in Frankfurt am Main, western Germany.

[BERLIN] Moody's Investors Service upgraded Germany's banking system to stable from negative after the introduction of a banking-resolution framework removed uncertainty surrounding government support for lenders.

Banks are also benefiting from increasingly stable operating conditions and high-quality loans on their books, the ratings service said in a statement on Thursday. Lenders have also "significantly reduced" their exposure to volatile assets such as global shipping, commercial real estate and structured credit, Moody's said.