Disaster not in sight – regional banks resist Corona | 11/28/20

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MUNICH (dpa-AFX) – Despite gloomy warnings of an impending wave of bankruptcies, there is a ray of hope in the Corona crisis: The German regional banks are showing themselves to be resilient. So far, there have been neither major loan defaults nor a dramatic increase in risk provisioning at Volks- and Raiffeisenbanken as well as the savings banks, as the respective federal associations report. “The regional banks are ultimately solid as a rock,” says Heinz-Gerd Stickling, banking specialist at the consulting firm zeb in Münster, which is well known in the financial sector.

Several large banks have increased their risk provisions for potentially bad loans in recent months, including Commerzbank and several Landesbanken. But the regional banks are obviously getting through the crisis well so far. “It is always said that a large wave of insolvencies will roll on us all, and that it will hit the customers of the regional banks in particular,” says Jürgen Gros, the president of the Bavarian cooperative association. “You can’t see it that way.”

The German Savings Banks and Giro Association says: “Even with a very conservative risk assessment, the savings banks will definitely achieve a positive annual profit after tax in 2020,” says the German Savings Banks and Giro Association (DSGV).

According to Bundesbank figures, lending in Germany has so far been unrestricted during the Corona crisis, the loan portfolio to non-banks in Germany and in other euro countries grew by 3.3 percent from the beginning of the year to September ./cho/DP/zb



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https://www.finanzen.at/nachrichten/aktien/katastrophe-nicht-in-sicht-regionalbanken-widerstehen-corona-1029846042

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