After the ECB move, consumer advocates and politicians had asked the banks to lower the fees for account overdrafts.
Since there are good reasons for continued restraint on the credit demand and credit supply side, a sustained increase in lending is unlikely. “The risk that monetary policy will do more harm than good in the future has increased,” summarized Krüger. “The ECB is cementing the habit of its liquidity doping.” Politicians also openly criticized the central bank’s actions. “I see the latest rate cut by the ECB critical,” said Union parliamentary group Vice Ralph Brinkhaus the “Wall Street Journal” Germany. “The ECB must be careful that its decisions are not increasingly perceived as activism,” warned the CDU politician. Monetary policy does not replace structural reforms. The basis for SME loans is trust, “and it is primarily the national economies that are required and not the ECB”. Source: ntv.de, hla / DJ “Sparkasse President Georg Fahrenschon relies on mergers of public due to the burdens of low interest rates Building societies and insurers.
The merger of the Landesbausparkassen in Baden-Württemberg and Rhineland-Palatinate announced at the beginning of 2016 is an important step for the Sparkassen-Finanzgruppe, said Fahrenschon. “It will certainly not be the last merger. The owners are willing to take further steps.” Building societies and insurance companies are under particular pressure because of record-low interest rates, because they have promised their customers comparatively high credit interest rates. Many Sparkasse bosses are therefore pushing for mergers to reduce costs.
With the eight state building societies, which are entirely in public hands, it is easier than with some of the eleven savings bank insurers, said Fahrenschon. “The structures of public insurance companies are more complex because there are co-owners outside of the Sparkassen-Finanzgruppe.” (rts) Source: ntv.de “Europe’s financial institutions can fill up with their central bank at almost zero interest rates, but their customers still pay hefty fees when the tide is out. Consumer advocates criticize that. The first banks are moving – but only sparingly Many banks charge interest rates of over ten percent for overdrafts. (Photo: picture alliance / dpa) Several banks in Germany are lowering their overdraft interest rates – but only very slightly. They are reacting to the European Central Bank’s key interest rate cut (ECB).
This is reported by the “Bild” newspaper after a survey of more than ten financial institutions. On June 5, the ECB lowered the key interest rate again from 0.25 percent to 0.15 percent. Banks can borrow money from the central bank at this interest rate. According to the report, Deutsche Bank and Berliner Bank want to cut their overdraft facility conditions by 0.1 percent each to a maximum of 11.8 percent, depending on the account type, on June 16.biology essays services
At Norisbank, the overdraft facility interest rate drops from the current 11.25 to 11.15 percent. At Postbank, 11.95 percent instead of 12.05 percent will apply to the “GiroPlus” account and 9.3 instead of 9.4 percent for the “GiroExtraplus” account. Commerzbank will therefore be reducing the overdraft interest rates for new customers from June 26th 0.5 percent to 11.4 percent. The Targobank wants to change its interest rate on July 1st, the amount has not yet been determined.
After the ECB move, consumer advocates and politicians had asked the banks to lower the fees for account overdrafts. The Greens had renewed their demand for statutory upper limits for overdraft interest. Consumer advocates have been fighting against, in some cases, double-digit overdraft rates for years. “We have overdraft interest rates that are far too high compared to the rest of the interest rate environment,” criticized consumer advocate Dorothea Mohn in a survey. “The low interest rates have to be passed on to customers,” emphasized the investment expert from the Federation of German Consumer Organizations (vzbv). If that doesn’t work, politicians have to take action on dispozins. “We are calling for an interest cap.
A value of seven percent based on the Euribor reference interest rate would be conceivable. “Sparkasse President Georg Fahrenschon pointed out that the overdraft interest rates have fallen by an average of around three percentage points since 2008.” Even if the key interest rate is not the decisive factor in overdraft interest, shows the fact that the banking industry reacts to the general conditions “, explained the top representative of the German Savings Banks and Giro Association (DSGV).” The overdraft facility is the taxi among the loans and is only intended for short bridging. The great flexibility is also reflected in the conditions. “Michael Kemmer, General Manager of the Association of German Banks (BdB), argued in a similar way Overdraft facilities should generally “only help to bridge short-term financial bottlenecks, but then quickly and flexibly. That has its price, “explained Kemmer.” Anyone who needs long-term credit should reschedule in installment loans, which are much cheaper. “The Federal Association of German Volksbanken and Raiffeisenbanken (BVR), currently the mouthpiece of the German credit industry, said it had customers in terms of account management and disposition conditions, “the opportunity to choose from a large number of offers”.
It is precisely this flexibility that consumer advocate Mohn does not see. When it comes to overdrafting, the competition doesn’t work: “The banks also take advantage of the fact that you can’t change an account as easily as the telephone provider or the energy supplier.” Max Herbst from the independent Frankfurt financial consultancy FMH, who regularly compares the conditions of banks , said that, according to his observation, a number of institutes had taken the key interest rate cut as an opportunity to lower their investment rates: “The ECB has given the lead. The institutes argue: the ECB will cut, then will cut too,” says Herbst.
Europe’s largest direct bank ING-Diba said that its savings interest rates are not linked to the ECB interest rate: the conditions for savings products will remain “unchanged for the time being”. The ECB’s anti-crisis package includes cheap money, new emergency loans and penalty interest rates for banks, who park their money at the central bank. This is intended to stimulate growth in the euro zone and prevent an impending decline in prices. Source: ntv.de, ddi / AFP / dpa “News and information at a glance. Collection of articles by n-tv.de on the subject of the Fifa Ethics Commission The re-election of the scandalous toast As President of the World Football Association, nothing stands in the way of Joseph Blatter, because the Fifa ethics committee issues a clean bill of health to its boss, who is suspected of corruption.
Only the executive members Mohamed Bin Hammam and Jack Warner, who were also summoned, are punished. Shortly before the award for the 2018 and 2022 World Cup finals, a FIFA official causes a stir. He explains that a deal between the applicants is quite possible – although the Fifa ethics committee had denied exactly that.
Other corrupt executives are also making headlines. In the scandal surrounding the corruptibility of high-ranking Fifa officials, one accused admits having made mistakes. Much more than a muzzle for the FIFA executive can currently not think of President Joseph S. Blatter. The ethics committee should take care of the case, and the applicants will also be examined carefully.
Nothing stands in the way of the re-election of the scandalous Joseph Blatter as President of the World Football Association, because the Fifa ethics committee issues a clean bill of health to its boss who is suspected of corruption. Only the executive members Mohamed Bin Hammam and Jack Warner, who were also summoned, are punished. Shortly before the award for the 2018 and 2022 World Cup finals, a FIFA official causes a stir. He explains that a deal between the applicants is quite possible – although the Fifa ethics committee had denied exactly that. Other corrupt executives are also making headlines.
In the scandal surrounding the corruptibility of high-ranking Fifa officials, one accused admits having made mistakes. Much more than a muzzle for the FIFA executive can currently not think of President Joseph S. Blatter. The ethics committee should take care of the case, and the applicants will also be scrutinized. “Germany’s savings banks are preparing for tough times: the ECB’s zero interest rate policy is forcing the locally rooted financial institutions to act.
Association boss Fahrenschon makes it clear: “The time of free current accounts is over.” The crisis course of the European Central Bank (ECB) is obviously facing enormous challenges for Germany’s savings banks: Given the historically low interest rates in the euro zone, the good results could not be restored in the coming years achieve, as Sparkasse President Georg Fahrenschon explained at the annual press conference of the German Savings Banks and Giro Association (DSGV). The savings banks urgently need to take countermeasures and cut costs. “In view of the wrong interest rate policy, all market participants have to develop new sources of income,” said Fahrenschon. Last year, the 413 German savings banks were able to compensate for falling net interest income with higher net commission income – especially thanks to good business with securities. The savings banks’ pre-tax profit was ultimately a total of 4.6 billion euros, 200 million euros below the 2014 figure.
The bottom line was again a surplus of around 2.0 billion euros. “In view of the ECB’s interest rate policy, however, it is clear that these good results will not be repeated in the next few years,” said Fahrenschon literally. “The savings banks will face very strong business challenges.” In the past year, the savings banks would not have filled 6427 vacant positions, said Fahrenschon. “I assume that this trend will continue.” In the case of the necessary downsizing, one will use the natural fluctuation and make it socially acceptable. In view of the low interest rates, according to Fahrenschon, savings banks must also think about charging fees for banking services that were previously free. “The days of free current accounts are over.” In addition, the 409 savings banks want to expand their securities and lending business. Growth in these two areas already contributed to the fact that the institutes were able to compensate for the lower net interest income, wage increases and higher burdens from the bank levy. Sparkasse President Fahrenschon had already massively criticized ECB boss Mario Draghi in the run-up to the latest interest rate decision. In a “dead end you have to have the courage to turn around”, he appealed to the monetary authorities. “Continuing full throttle leads to disaster.” In order to avoid the penalty interest of the central bank, the savings banks are currently considering the introduction of a kind of “cash protection” in which the money is no longer stored overnight at the ECB, as before, but in its own safe. Source: ntv.de, mmo / dpa / rts “(Photo: picture alliance / dpa) The German Skatbank is showing the way and demanding penalty interest from its customers. The President of the Association of German Banks also considers negative interest rates at other institutions to be possible.
For some banks, however, penalty interest rates are out of the question, and given historically low interest rates, Germany’s private banks do not rule out penalty interest rates on customer deposits. “Each individual institute has to deal with the issue,” said the co-head of Deutsche Bank, Jürgen Fitschen, in his role as President of the Association of German Banks (BdB). He is certain, however, that all banks will deal with the issue “very responsibly”. In this context, Fitschen indicated that at least savers with small deposits should initially be spared the burden of negative interest rates. The European Central Bank (ECB) demands 0.2 percent interest from banks that park money with it. The Deutsche Skatbank had caused a stir because it had been passing this on to customers since November – but only for total deposits over three million euros. On the weekend, the President of the German Savings Banks and Giro Association (DSGV), Georg Fahrenschon, had negative interest on savings deposits at the savings banks locked out. Commerzbank said last week that penalty interest for its private and corporate customers was not an issue for the German number two, while the BdB advocated tax relief for contributions to the new EU bank resolution fund. “If the bank levy is deductible in France, Spain and Ireland, this should also be the case in Germany,” said Fitschen. “Otherwise we would have a clear competitive disadvantage.” The resolution fund is to be filled with 55 billion euros by 2024.
A large part – probably 15 billion euros – is likely to be contributed by German institutes that are already paying into a national crisis fund. In Brussels, the federal government failed in its attempt that the levy that would be levied across Europe in the future should not be claimed for tax purposes. Source: ntv.de, bdk / dpa “(Photo: picture alliance / dpa) A survey by the Sparkassen- and Giroverband, financially as good as it has been for a long time. Nevertheless, the tendency of people to put money on the high edge is dwindling. And the proportion of those who cannot. The German Savings Banks and Giro Association – DSGV for short – is worried about it the culture of savings in Germany.
16 percent of Germans see themselves “financially not in a position” to actively provide for old age, the association said when the wealth barometer was published in 2014. This value was 12 percent in 2012 and 14 percent in 2013 and is therefore rising steadily. The development among 14 to 29-year-olds, half of whom do not build up any reserves for old age, explained DSGV President Georg Fahrenschon. This is 24 percentage points more than last year.
In addition to the lack of funds, the reason for this is probably also a low incentive. At the same time, satisfaction with one’s own financial situation nationwide is better than it has been for a long time. 58 percent of the respondents found their living conditions to be good or very good, said Fahrenschon, referring to the representative survey of 2000 people of all ages from 14 years on: “That is the highest value in the past ten years.” In 2005 only 40 percent would have assessed their own material situation as well. At the same time, the group of German citizens who rate their circumstances negatively halved in the same period from 18 to nine percent. 20 percent of those surveyed also assume that their financial situation will improve even further in the next two years. “This positive development is certainly largely due to the overall positive employment situation and the recent high wage agreements,” said the association president.