Germany sets bank bail-out rules

Bank chiefs will have salaries capped if their banks use the bail-out deal

The German government has set out the conditions that banks must accept if they want to take part in its 480bn-euro (£370.4bn; $645bn) bail-out plan.

Under the conditions, top staff at banks that accept direct injections of capital from the government will see their salaries capped at 500,000 euros.

They will also miss out on bonuses and dividend payments while their banks are receiving government help.

The rescue plan was approved on Friday and includes funds to buy risky assets.

The bail-out includes 400bn euros in lending guarantees, while a further 80bn euros will be provided for recapitalisation and to buy-up risky assets.

Reaction to the plan among the heads of the country's leading banks has been mixed.

Deutsche Bank chief executive Josef Ackermann said that his bank would not be participating in the bail-out.

Commerzbank chief executive Martin Blessing said he would consider whether the package was right for his business, according to German newspaper Bild on Sunday.

But other banks have jumped at the chance, with state bank BayernLB saying it wanted the money as soon as possible.

"It's about achieving a fast stabilisation," said BayernLB's administrative board boss Erwin Huber.