Volksbankenverband reacts to costly renovations | EUROtoday

The German cooperative banks deserved greater than ever after preliminary enterprise figures final yr. With an added 9.5 (2023: 9.3) billion euros in revenue earlier than taxes, the credit score establishments, that are primarily organized as folks and Raiffeisen banks in 2024 with a smaller enterprise quantity (stability sheet sums: 1.2 billion versus 1.4 billion euros) labored nearly twice as worthwhile as Deutsche Bank with a gross revenue of 5.3 billion euros. However, no less than three costly renovation circumstances in 2024 alone beneath Volks- und Raiffeisenbanken organize the BVR members’ affiliation to tighten the interior guidelines for the second time inside three years.

The cooperative monetary affiliation is held along with the 672 native banks and the highest institute DZ Bank with subsidiaries such because the insurer R+V and the Bausparkasse Schwäbisch Hall by the safety establishment of the Federal Association of Volks and Raiffeisenbanken (BVR). In this solidarity legal responsibility community, all member banks pay annual charges with which group members have supported in want and (principally in line with mergers with neighboring institutes). Since 1934, the safety facility ensured that no buyer of a folks or Raiffeisenbank misplaced cash within the occasion of a disaster.

But this promise has all the time been creating incentives. Finally, the renovation circumstances costly for the group elevated to no less than three. The safety facility is “not a free ticket for high -risk businesses and grossly negligent action,” warned Marija Kolak. The President of the BVR appeased on Monday on the annual press convention on the identical time, ten years in the past there was even a medium -sized double -digit variety of banks in renovation. But Kolak additionally stated: “Some responsible persons have taken far too high risks.” The banks in Bad Salzungen Schmalkalden (“Effenberg-Bank”), Dortmund-Nordwest and Düsseldorf Neuss alone value the backup facility, as reported, round 500 million euros.

As a educating from these harm circumstances, the BVR now desires to reform the safety facility. Kolak spoke of 40 particular person measures, together with adjustments to the statutes which can be to be determined on the normal assembly after subsequent. The BVR desires to obtain the precise if the scenario requires the scenario to have the ability to take part within the supervisory board conferences of troublesome banks. The six banks presently checked by a cooperative affiliation should anticipate larger membership charges. And above all, the interplay of examiner associations, DZ Bank and BVR is to be improved.

Kolak, who’s a consultant of the BVR on the DZ Bank supervisory board, didn’t repeat her criticism that DZ Bank had provided crushing native banks for too lengthy. She emphasised that the DZ Bank needed to be provided sooner, deeper and extra recurrently with data from the protection gadget to be able to restrict liquidity. The BVR President didn’t reply the query of whether or not she ought to have intervene extra controlling as a DZ-Bank supervisory board. It additionally applies that information associated to supervisory board mandates should not be handed on within the BVR. Therefore, the change of knowledge between DZ Bank, examiner associations and BVR safety facility also needs to be extra institutionalized for the work stage.

Some cooperative financial institution is now afraid of extra paperwork. But for Kolak above all: “Missmanagement is not acceptable in our solidarity community. People have to be able to rely on the fact that our Volksbanken and Raiffeisenbanken are managed well and safely. ” Despite all enterprise successes, extra cooperative members nonetheless die than new ones. And in line with an inner BVR paper, 14 cooperative banks are presently categorized as a fame threat for the group. In addition to the three recognized banks, these are additionally reported to those that have faraway from the core of the banking enterprise by working journey companies or are strongly lively past their area. For instance, VR-Bank Bad Salzungen Schmalkalden brothels within the Ruhr space and soccer golf equipment in Spain had financed.

The BVR can not implement the usually conjured precept, in line with which each financial institution is just lively in its area, the Cartel Act is opposed. However, institutes, “who act nationwide and/or expand into completely new business models, should be accompanied more critically,” stated BVR board member Daniel Quinten. The affiliation can additional enhance the membership charges for dangerous banks and enhance the preventive examination by the protection gadget. For this, this space of ​​the BVR, by which 65 individuals presently work, can also be to be bolstered.