ECB's new rules for parking cash provides some relief - German banks

BERLIN (Reuters) - Germany's bank lobby group on Friday said the European Central Bank's (ECB) decision to reduce penalties for parking large amounts of cash with the ECB would help local lenders save 500 million euros ($554.70 million) annually.

Germany's banks will still pay negative interest rates for storing unused cash, but staggered penalties which are applicable from Nov. 1 are less of a burden than the current system, the BdB said.

"The relief (for banks) is moderate", the lobby said.

(Reporting by Tassilo Hummel; Editing by Edward Taylor)