The Mittelbrandenburgische Sparkasse is one of the largest savings banks in Germany. It wants to close about a quarter of its branches.
(Photo: imago images/F. Anthea Schaap)
Frankfurt Brandenburg’s Prime Minister Dietmar Woidke warns against branch closures at savings banks. In a letter to Ludger Weskamp, the President of the East German Savings Banks Association (OSV), the SPD politician writes that he is following the current reports on planned branch closures at the Mittelbrandenburgische Sparkasse and the Sparkasse Uckermark with concern.
“The announcement of such closures in the branch office network is often associated with the concern of losing personal contact on site among citizens,” says the letter, which is available to the Handelsblatt. Older people in particular could feel cut off from the usual basic services provided by the savings banks.
The “Märkische Oderzeitung” and the “Nordkurier” had previously reported on the letter, which also went to the board of directors of the eleven Brandenburg savings banks.
It is unusual for a Prime Minister to intervene in the event of intended branch closures. In the affected places, the planned closures of offices had caused some excitement.
The Mittelbrandenburgische Sparkasse from Potsdam, which is one of the largest savings banks in Germany, wants to close more than a quarter of its manned branches by the beginning of next year. At the end of 2022, it had 115 branches.
The left in the Brandenburg state parliament demands, among other things, that the state government, together with the sponsors of the savings banks, the cities and municipalities, ensure that the planned branch closures are stopped. Woidke heads a government made up of SPD, CDU and Greens.
The Prime Minister’s letter is again an occasion and reason for us to seek talks with the relevant savings banks. East German Savings Banks Association
The number of bank branches has fallen significantly in recent years – to around 20,500 at the end of last year. In 2022, the financial institutions closed almost six percent of their branches. At the end of 2012 there were still more than 36,000 branches, in 2008 almost 40,000.
As a reason for the thinning out of their branch network, the credit institutions usually state that more and more customers do their banking transactions only or largely online and hardly ever visit the branches anymore. In addition, some financial institutions lack the staff to staff small branches. On top of that, banks can reduce costs by closing branches.
Local savings banks make the decisions
For savings banks in particular, branch closures are a balancing act. First, being close to the customer is an essential part of their raison d’être. Second, they should ensure the supply of monetary and credit services.
The East German Savings Banks Association emphasized that the Savings Banks make business policy decisions locally. However, the association wants to get in touch with the two savings banks that have announced branch closures. “For us, the letter from the Prime Minister is once again an opportunity and reason to seek talks with the relevant savings banks. On the basis of these discussions and in coordination with the savings banks, we will then reply to the Prime Minister.”
The boards of directors of the savings banks also include, or mostly, local politicians. For the closure of branches, the savings bank board members need the approval of the board of directors, as provided for in the Brandenburg Savings Banks Act. “The information available to us so far shows that the board of directors and the board of directors of the savings banks concerned weighed them up carefully and did not take the decisions lightly,” the OSV continued.
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