Seven-sided analysis: ECB and financial supervision want to clean up savings banks

Legally, each savings Bank and each Landesbank in Germany, is a private company, but in the composite, the institutions support each other, especially if one ge

Seven-sided analysis: ECB and financial supervision want to clean up savings banks

Legally, each savings Bank and each Landesbank in Germany, is a private company, but in the composite, the institutions support each other, especially if one gets into trouble. There is a so-called institutional protection system (IPS) with a Fund, from which needy banks, for example, can draw.

This System needs to be cleaned up, say European Central Bank (ECB) and the Bank supervision Bafin. Both institutions would demand, was already since beginning of the year, clearly. Now, the "Handelsblatt" reported a letter with a seven-page analysis of the ECB's Director General, Patrick Amis and Bafin chief Raimund Röseler to Helmut Schleweis, the chief of the German savings banks and Giro Association (DSGV).

controller to make seven points of criticism in the case of Sparkasse

Accordingly, the auditors is that the backup system is poorly organised: "Complex decision-making processes and the Lack of clear responsibilities, prevent the timely resolution of support cases," the letter says. In addition, there are too few incentives for the IPS, in problem cases, in fact, intervene.

to revise the organization of The security system, is likely to be for the savings banks and country banks, there are no insurmountable hurdle. However, the auditors have identified a further six points: the internal controls should be tightened, liability limits are repealed, and certain auxiliary funds be merged. DAX 11.586,85 PTS. -194,28 (-1,65%) Xetra

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New multi-billion dollar relief Fund, arise

elsewhere to arise for new pots: So the ECB and Bafin criticize about that in the backup system, funds deposited are not meant only for the support of distressed banks, but also for the legally required safeguard the savings deposits of customers. This should not be, - said in the letter. The DSGV had set up for assistance in a new Fund.

The Association will now be asked to submit a Plan on how such a Fund could be organised in the future. In the previous pot, the funds should remain for the security of savings is necessary.

Sparkasse Association is resisting ECB-criticism

This is for the savings banks and country banks is more than just an organizational Problem. As for the new support Fund will have to raise new funds. This is not cheap: a Seven-billion Euro have to be done for the security of savings, that is 0.8 percent of total deposits. How much is for an emergency Fund is necessary, it is not yet known.

According to the DSGV responds acidified on the receivables from Frankfurt. In the nine-page letter in reply, from which the Handelsblatt quoted also argues Schleweis, the previous return were, were absolutely sufficient. In addition, the EU would not provide law, more than the required 0.8 percent of the deposits to accumulate.

Also in the organizational Changes Schleweis sees problems. Many of the structures are historically grown and to the respective constitutions of the German länder is oriented. These now break down, is not always possible, at least not alone by the DSGV.

What needs to implement the Association of the ECB and Bafin receivables at the end, in fact, is now being negotiated in the first place. The examiner will evaluate the answer of DSGV and their claims and then adjust. At the earliest, in the summer, is likely to be the final result. Meanwhile, the DSGV want to consider what claims would like to implement.

The Users of FOCUS Online say to the item
  • "Now, Corona must serve as a justification for the since years by the big banks desired the destruction of the savings banks. The small savings Bank will again be the Stupid one. ECB, shame on you."
  • "We have a Bafin, a German Bundesbank, u don't always need the mouth to the ECB. Or wants to determine the ECB through the back door all the German banks? The ECB is expected to provide for themselves: Who has an illegal government bonds in immense amount purchased u. ailing southerner alive? And now we are supposed to bless these countries with our tax billions more! Yes it's even!"
  • "'Seven billion euros have to be done for the security of savings, that is 0.8 percent of the total deposits.' The Fund must lt. EinSiG for the first time to 3. July 2024 will be built. And who then secures the remaining 98.2% of? 'Sure is, that nothing is safe.' - Ringelnatz"

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Updated Date: 30 May 2020, 03:28

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