The bailout of German banks hit by the financial crisis is likely to cost between €34bn ($44bn) and €52bn, according to a study conducted for the Initiative New Social Market Economy.

The study, released yesterday, estimates that the costs will amount to 1.4% to 2.2% of gross domestic product in Germany, or €417 to €632 per capita. It also recommends that the government gradually divest its shareholding in banks.