Muenster Even 15 years after the outbreak of the global financial crisis, the fear of state banks going into difficulties is omnipresent in the public banking sector. In the end, the savings banks had to save their ailing leading institutions from collapse with financial injections – most recently in 2019, NordLB.
To prevent this from happening again, the Westphalian savings bank president Liane Buchholz has now launched an initiative that is tantamount to a revolution for the public finance sector: Buchholz is calling for the creation of a bad bank, with the help of which state banks could be wound up more easily in future.
“If an institution in our group gets into trouble, we have to strengthen the capital. We don’t have any other options,” said Buchholz in an interview with Handelsblatt. “We therefore need additional instruments to be able to deal with cases of doubt.”
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
further
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
further