BERLIN - GERMAN banks said on Sunday they would discuss a new state rescue plan as it comes into effect, following a report the banks were considering making joint demands for aid.

The talks on Monday 'will take place as part of a regular meeting of bank representatives', said a spokesman for the Union of German Banks (DSVG), which has 17 regional bank members.

A report on Saturday said the banks would consider unifying their demands one day after the German parliament rushed through a 480-billion-euro (S$ 960.25 billion) rescue package that comes into effect on Monday.

Private and regional banks will discuss the common approach aimed at streamlining what could be a chaotic process, Focus magazine said, citing an unnamed senior bank official.

Meanwhile, a German newspaper reported that regional bank BayernLB was the first to publicly announce its intention to request state aid.

BayernLB could on Tuesday ask for help under the rescue plan, the journal Bild reported, citing the Bavarian minister of finance who heads the bank.

The bank could require 'billions of euros' in liquidity, state guarantees, and state purchases of high-risk instruments, said Mr Erwin Huber, cited by Bild.

'The bank will present its figures on this on Tuesday,' he said.

Starting on Monday, banks can make direct requests for guarantees on loans of less than 36 months from other banks, with the government setting aside 400 billion euros for the purpose.

Banks can also ask the state for fresh funds in exchange for equity stakes, from another fund worth a total 80 billion euros.

Accords between the banks and the state are to be established on a case-by-case basis and will only be made public if a bank's by-laws require it.

Otherwise, they will remain confidential, said finance ministry spokesman Torsten Albig.

Other countries in Europe have recently implemented similar measures to bail-out their banking sectors. -- AFP