The savings banks are doing away with comfortable pensions for board members

Frankfurt It’s almost a ritual. Every time a high-ranking savings bank official speaks up, he complains about the European Central Bank’s policy of negative interest rates. “The low and negative interest rate phase, which has been going on for more than ten years, is constantly eating up the interest margin, especially for retail banks with large deposits,” criticized Sparkasse President Helmut Schleweis a few days ago.

The majority of the 367 savings banks are not only feeling the consequences of the chronically low interest rates in day-to-day business, but also in other areas. In many cases, the financial institutions have built up enormous reserves in order to be able to pay fixed retirement benefits to their incumbent board members. In some cases, it is in the tens of millions.

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