Austrian bank Volksbanken, has added to the growing number of European banks to withdraw investment funds linked to food commodities.
In total four German banks, one Scandanavian bank and one Austrian bank, including giants Deutsche Bank and Commerzbank, have all either withdrawn food-based funds or stopped issuing new ones.
The announcements follow the revelation last week that food prices globally have soared by six per cent. Research has shown that financial speculation has exacerbated food price spikes.
Food campaigner Christine Haigh of the World Development Movement commented that: “This is great news – but not enough. These banks are continuing to speculate on oil, which has a knock-on impact on food prices. and Many other banks, including the UK’s Barclays, are continuing business as usual. What we really need is strong legislation to limit all financial sector speculation on the price of food commodities.”