Volks – and Raiffeisen banks: the financial group expects steep rise in corporate insolvencies

The co-operative banks in the aftermath of the Corona-crisis, because many of your customers are not able to pay back loans for the time being as planned. The Federal Association of German people’s banks and Raiffeisen banks (BVR) also reckons, despite far-reaching government economic support and assistance for crisis-ridden company with a strong rise in the event of the insolvency of the company.

Mark Fehr

editor in the economy.

F. A. Z.

“The number of corporate insolvencies is expected to rise in 2020 to about 20 per cent,” said BVR-President Marija Kolak on Wednesday at the press conference to the consolidated financial statements of the cooperative financial group. The output level is, however, in the long-term comparison low.

The cooperative financial group in addition to the approximately 800 local Volks – and Raiffeisen banks, their Central institution, DZ Bank, as well as to the Fund Union Investment, Bausparkasse expired Schwäbisch Hall and the insurance company R+V.

permission for Deferrals

The Association to the risk of credit default for the financial group are considered to be manageable. According to the BVR management Board member Gerhard Hofmann almost 98.700 credit accounts are currently in deferment – this is a third less than at the peak in March and April. The reason for the decline is that the state exemption of Corona affected borrowers to the 30. June was run. This Moratorium allowed the debtors, the repayment of your before 1. To stop July liabilities due temporarily, in order to gain financially air.

In the case of a loan deferment is subjected to the payment of interest and repayment temporarily. The currently deferred loans from the BVR, according to Hofmann, a volume of 15.7 billion euros, which accounts for 2.7 percent of the total loan volume. The majority of these claims (96 percent) was secured by real estate. Due to expensive real estate market, this is likely to offer banks a strong protection.

money for houses deferred loans to report weekly to the supervisor. In the Individual accounts for BVR-banks for the 3. July 58.522 Deferrals to private debtors, which corresponds to a volume of 7 billion Euro and a share of 1.9 per cent in this customer segment. Commercial borrowers made in 40.156 cases, the use of which corresponds to a volume of EUR 8.6 billion and a segment share of 3.9 per cent.