With the building societies it concerns special credit institutes, which operate the financing of housing projects due to the restriction of line of business regulated in the building society law essentially only.

Philosophy

One can clarify the philosophy of the building saving by the following example:

Ten building-willing, without own capital funds, save residential property with the goal to acquire. If everyone is able to save a tenth of the acquisition costs per year then everyone would have accumulated the necessary capital after ten years. If the ten building-willing bring their saving into a common "“savings pot"”, then from this the necessary sum first of them can already become disbursed after one year (dispatching) (a tenth as repayment of the furnished savings achievement and nine tenths as saving loans with a building company). If it is now subordinated that the assigned building saver pays, each year back a tenth of the received building savings sum as repayment of the saving loan with a building company into the common "“dispatching pot"”, then the second building saver can already carry out its construction measure in the second year. In the third year are, under same conditions, eight saving and two repayment achievements in the "“dispatching pot"”, so that also the third savings agreement for building purposes can be assigned.

The building savings reality is however somewhat more complicated, since there is no closed building savings' group. Nevertheless the today's building savings system is based on the represented philosophy of the collective building saving.

History

That the building savings system underlying collective savings thought became already around 200 v. Chr. in China carries out. During the Han dynasty non-profit savings companies were created on mutuality.

The first building society developed 1775 in Birmingham, afterwards in the USA (1831), in Australia and New Zealand (1832), in South Africa (1833) as well as in Brazil (1834).

1885 were created by minister by Bodelschwingh in Bielefeld the first German building society, the building society for everyone.

Finally the building savings system could be established in the years 1924 to 1929, due to the high money need for the reconstruction according to the First World War, in Germany.

End of the 1930er years gave it the first fundamental change in the German building savings system. The up to then common "„lot system "“was replaced by an appraisal procedure, which was fairer. It made the dispatching date of the individual building saver of the way of its formation of savings capital pending.

After the currency reform in the year 1948, the upswing of the German building societies began with the Wirtschaftswunder.

1973 came into force the building society law and the building society regulation. Thus for the business activity of the private and public building societies uniform legal bases one created.

By amending the building society law 1991 building societies the way was opened to that into the European domestic market. At the same time the possibility was created by unsecured loans for Kleinstdarlehen and an extensive package of build-savingstechnical safeguards.

Legals form

The building societies differ among themselves in their legals form.

The building societies united in the federation of the 16 private building societies in the legal form by corporations are operated and to rule itself predominantly in the property or sphere of influence of insurance companies or banks. The largest private building society, which to building society Swabian resound, is closely connected and ordered with the cooperative sector with the people and Raiffeisen banks by an important underbody for their akquisitorische and advisory activity.

A special role in the camp of the private building societies has also the BHW, which was carried until 2005 by the German civil service association and German trade union federation and on a large number of confidence people in the public service rely in such a way could. On 2 January 2006 BHW was taken over by the postal bank.

The second group of building societies, at present 11 national building societies, consists of institutes, which in the working group stands predominantly or several Lands of the Federal Republic and/or the respective savings bank organization. The national building societies are members in the German savings bank and Giroverband and from there by the federal office national building societies are cared for.

Four national building societies are dependent departments/divisions of a Landesbank or a savings bank. They are considered nevertheless, in accordance with the building society law, as independent building societies.

Three national building societies are legally responsible institutes of the public right.

Due to the regional dismemberment on particulars or a group of Lands of the Federal Republic, the national building societies, contrary to which country widely transact, stand for private building societies, among themselves not in the competition.

Building savings promotion in Germany

In the Federal Republic of Germany the building saving through the grant is promoted by housing bonuses for savings achievements on building savings accounts and the payment by employee savings extra pay for the fortune-effective achievements. One speaks also of the establishment and/or acquisition of residential property uses the so-called in form of the home of one's own extra pay and the Kinderzulage.

Building societies in Germany

The building savings market in Germany is covered to approximately two thirds by 16 private building societies and to for instance a third by eleven national building societies. With approximately two thirds of all financing of housing projects in Germany, a building society is involved.

See also

• Private building society, national building society, savings agreement for building purposes

Articles in category "Building society"

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Related Websites

We found here 3 related websites.

• Britannia Building Society
  Mutual Building Society offering a range of home related products.


• Nationwide Building Society
  Nationwide Building Society Home Page - Banking, insurance mortgages, loans, credit cards, pensions savings and much mor.


• Yorkshire Building Society
  Yorkshire Building Society - Mortgages, Savings, Insurance, Credit Cards.