Tuesday, March 15, 2016

Life in the zero lower phase Sparkassen shake the current account – n-tv.de NEWS


 Economy

 


 Tuesday, 15 March 2016

 
 
 


 
 Germany’s savings banks are adapting to tough times: The zero interest rate policy of the ECB is forcing locally rooted financial institutions to act. Association chief Fahrenschon makes clear: “The time of free checking accounts is over.”

 


 
 

The crisis rate by the European Central Bank (ECB) is Germany’s Sparkassen obviously enormous challenges: Given the historically low interest rates in the euro zone were the good results in the coming years do not reach back as Sparkassen-President Georg Fahrenschon at the annual press conference of German Savings Bank Association (DSGV) said. The financial institutions should urgently counteract and reduce costs.

“All market participants have given the wrong interest rate policy new revenue streams;” Fahrenschon said. Last year, the 413 German savings banks were able to offset declining net interest income due to higher commission income – particularly thanks to good transactions with securities

“strongly demanded” by the ECB was

The pre-tax profit of the financial institutions ultimately total. again with 4.6 billion euros to 200 million euros lower than in 2014. the bottom line was a surplus of around 2.0 billion euros. “However, it is clear in view of the ECB interest rate policy, that these good results are not repeated in the coming years,” Fahrenschon said literally. “The savings banks will be rather enterprising strongly demanded.”

In the past year were the financial institutions 6427 vacant posts not refilled, Fahrenschon said. “I expect that this trend will continue.” When necessary staff reduction will be to use natural attrition, and make it socially acceptable. Given the low interest financial institutions must also think about noisy Fahrenschon to charge fees for banking services that were previously free. “The time of free checking accounts is over.”



Fahrenschon warns of “catastrophe”

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In addition, want to expand the securities and lending business continued the 409 savings banks. Increases in these two areas have already contributed in 2015 to the fact that the institutions were able to compensate for the decline in net interest income, wage increases and higher loads of the bank levy.

Credit Unions president Fahrenschon had ECB chief Mario Draghi in advance of the recent rate decision heavily criticized. In a “dead end you have to have the courage to turn around,” he appealed to the monetary authorities. “Next full throttle starts the disaster.” To avoid the penalty interest the central bank, the financial institutions are currently considering the introduction of a kind of “cash protection”, in which the money will no longer be supported as before with the ECB, but in his own safe overnight.

  Source: n-tv.de
 


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