Cooperative banks
Volks banks tighten rules for expensive emergency operations
In the case of imbalances, folk and Raiffeisen banks can rely on well-filled backups. In 2024, several crisis banks strained the solidarity model. That has followed.
After several expensive renovation cases at Volksbanken, the BVR industry association is driving a tightening of the rules for the joint rescue network of the cooperative banks. The solidarity community of the security facility is “not a free ticket for high -risk business and grossly negligent action,” emphasized the President of the Federal Association of German Volksbanks and Raiffeisenbanken (BVR), Marija Kolak, in Frankfurt. Basic changes would now be made at the institute security.
Last year, the cooperative financial group had to shield risks of almost 500 million euros over the BVR security facility at three banks-an unusually high sum. “Some managers have taken far too high risks,” said Kolak.
“Only act in markets that you know really well”
As a consequence of the emergency operations, the BVR wants to make institutes “who have excessive risk profiles and develop critical business models”, as BVR board member Daniel Quinten. Quints emphasized: “We have clear expectations of the care of the management in a cooperative bank and the fulfillment of the duties of care of the institute security. We will make these expectations more important.”
According to BVR, it is also considered to be able to attend the right to be able to take part in the supervisory board meetings of a crisis institute if this should be necessary, in order to be able to go to the contrast with the inspectors of an institute that has come into trouble.
BVR: Vast majority of the institutes are solid
The BVR works with all the consequence of the further development of institute security and security facility, BVR President Kolak assured. “Missmanagement is non -acceptable in our solidarity.
The vast majority of the institutes in the cooperative financial group do not take excessive risks and last year proved that they could deal with the economic and economic crises.
In total, the 672 Volks- und Raiffeisen banks, Sparda banks and PSD banks increased their annual surplus before tax by 2.3 percent in the previous year to around 9.5 billion euros. According to these preliminary figures, the surplus was a good 2.1 billion euros after around 1.96 billion euros in 2023.
dpa
Source: Stern
