Berlin / Stuttgart the home loan industry is due to the zero interest period under massive pressure. In addition, the stringent regulatory requirements after the financial crisis lead to additional costs. Companies are responding by cutting costs on this trend, and expensive legacy contracts rid of them.
The Bausparkasse Schwäbisch Hall holds about at the termination of numerous old contracts. “We do this for reasons of equal treatment of home savings”, chief executive Reinhard Klein told the “Welt am Sonntag”. What is possible and permissible, you’ll need to use. However, were the contracts would terminate, on average 22 years old. “It’s certainly no pleasure to terminate contracts. But you can also say: After 15 to 20 years, a contract may also end, “said Klein. Customers who rejected an allotment of building savings volume as long probably are not interested in taking the loan. “But that is the purpose of building savings.”
So the assets are spread across German households
The high credit interest of the contracts from the. 1990s are a burden on the industry in today’s low-interest periods. The large wave of layoffs began in 2015, over 200,000 old contracts were dissolved. Despite Klein expects that in Schwäbisch Hall new contracts with a contract sum of around 30 billion euros this year.
In a major rival it had in the first half of five billion euros. The LBS West is now retroactively 1 January 2016 arose from LBS Baden-Württemberg and Rhineland-Palatinate LBS. The merger was finally completed on Saturday, informed the LBS with in Stuttgart. With 1150 employees and total assets of over 17 billion euros, the new bank will be larger than the LBS West and LBS Bayern. Office is in Stuttgart with about 600 employees, Karlsruhe (300 employees) and Mainz (250) are only locations.
Save or Finance the best savings rate
In order to complete the merger both companies submitted half-year figures. Reported to the LBS Baden-Württemberg from January was able to conclude new savings contracts with a volume of 3.94 billion euros by June – although this was a decrease of three percent compared to the same period last year, but a decline at very high levels. The LBS Rhineland-Palatinate could enter into contracts for 1.05 billion euros, posting a rise of almost five per cent. A company spokeswoman said the merger will secure the performance of LBS West. It was “prepared for the continuing challenges of the low interest rates”.