2nd UPDATE:Deutsche Bank CEO:Banks, Insurers Agree To Bonus Rule In 2009

Germany's eleven leading financial institutions have agreed to self-regulation to limit excessive bonus payments already this year, according to Deutsche Bank Chief Executive Josef Ackermann and German Finance Minister Wolfgang Schaeuble.

The commitment from all big German banks and insurers comes ahead of the Group of 20 countries' agreement to do the same in 2010 and came in response to a suggestion from Schaeuble, Ackermann said Thursday at a press conference organized by the Initiative Financial Center.

The agreement was supported by eight banks and three insurers, according to a document seen by Dow Jones: Deutsche Bank AG (DB), Commerzbank AG (CBK.XE) Hypo Vereinsbank AG, DZ Bank AG, WestB AG, Landesbank Baden-Wuerttemberg, BayernLB and HSH Nordbank AG as well as insurers Allianz SE (AZ), Talanx AG and Munich RE (MUV2.XE).

The self-regulation is a move to create a global level playing field with other G20 countries, the agreement said.

"Our remuneration systems will be shaped in such a way that they will support even stronger our business targets toward sustainability," said the agreement seen by Dow Jones. "We explicitly support the Principles for Sound Compensation Practices - Implementation Standards of the Financial Stability Board from Sept. 25, 2009."

The banks and insurers agreed to "implement these principles as quickly as possible".

Schaeuble said he welcomed the agreement "because I am no great supporter [of the idea] that the state can everything better with regulation."

Schaeuble also said that "consequences of the severe disruptions [of the financial crisis] won't be overcome for a long time."

G-20 countries have agreed that bonus payments will defer over several years and that they will implement claw-back structures that allow bonus payments to be reduced if the long-term results of investment decisions turn sour.

The U.K. took a more radical step on bankers' remuneration Wednesday, announcing a 50% tax on bonuses paid by banks that exceed GBP25,000 annually. The tax will remain effective until April 5, 2010. The government hopes the measure will raise GBP500 million.

Schaeuble said the plan is charming for the financial center in London, echoing remarks by Chancellor Angela Merkel from earlier Thursday.

France is likely to introduce similar regulation in the future, a senior French government official told Dow Jones Thursday.

Schaeuble also said the government is examining the possibility of portfolio guarantees for securitizations, but the main responsibility should be with bank.

Ackermann said a sufficient supply of credits is important as is a revival of the securitization market, although excesses on such securitization markets must be prevented.

He said there will be a plan for a fund to provide capital for companies in a few days and Deutsche Bank will provide EUR300 million.

-By Andrea Thomas; Dow Jones Newswires; [phone]; [e-mail]