Loan banks are credit institutes in the legal form of a cooperative.

History

Loan banks are usually in Germany banks in the legal form of the registered cooperative. The beginnings of the loan banks go on the principles of the self-help, direct responsibility and autonomy from Franz Hermann Schulze Delitzsch and Friedrich William Raiffeisen in the middle 19. Century back. These two created independently the first credit cooperatives. While people banks predominantly developed within urban ranges, in rural areas Raiffeisen banks were created. Today still most loan banks in their name have cooperative bank ("“Voba"”), Raiffeisen bank ("“Raiba"”) or people and Raiffeisen bank (reverse-feed bank). Thus firmierten at the end of of 2004 of the 1,335 loan banks 540 as cooperative bank, 477 as Raiffeisen bank and 166 as people and Raiffeisen bank and/or reverse-feed bank. Beyond that there are still some loan banks with the company Spar- and Darlehnskasse, i.e. 11, loan bank 10 as well as saving and credit bank likewise 10. In particular in large cities also loan banks, those exist to the local name in their company particularly put out - like those Hamburg bank or the residents of Munich bank (46). Finally one finds still some other loan banks (73) like e.g. the savings since banks, the GLS community bank and the PSD banks.

Loan banks in Germany

The German credit institutes can be divided in three groups: public credit institutes, private business banks and loan banks. The strength of the loan banks lies particularly in their surface covering structure. Their market share based on the German Bankenmarkt at the balance sheet total was 2003 with 16,8%.

At the end of of 2005 gives it in Germany to 1,290 loan banks with an added balance sheet total of 591 billion euro, whereby over 200 loan banks beside the bank also operate the goods business.

The structure of the cooperative sector in Germany is two-stage. On regional level the loan banks are active. Over it the two genossenschaftlichen central banks DZ bank and WGZ bank are, with (entire) a balance sheet total of 261 billion euro (conditions at the end of of 2005).

Loan banks in Germany are organized in regional federations, which guarantee the examination apart from the support and support of the respective regional bank (e.g. by consulting daughters or educational provisions) also in accordance with credit system law. Thus the regional association appears also as test federation.

Business shares

The basic idea exists in accordance with "§ 1 of the Genossenschaftsgesetzes in the promotion of the acquisition or the economy of the members by means of joint business concern. The loan banks are carried for million members at present from 15,7.

At loan banks one can acquire business shares. Usually one must, in order to be able, customer of the bank be to acquire business shares. With some Geno banks also business shares can be acquired by non--customers. Appropriate is fixed in the respective statute.

Acquisition of the membership

The membership applies with the following conditions as acquired: Entry explanation, permission by the executive committee, deposit of the assets and exhibition of a document.

Height of the

The portion height is limited around independently of instructions individual upward to be been to win as much as possible voices and the dividend payment in the framework hold. This border is depending upon bank differently, however relatively low (e.g. 500 to 1,000 euro.) business shares can both natural and legal entities acquire.

Dividend

The height of the dividend is dependent on the operating result and by the general and/or representative meeting is approved. Usually is the dividend over the current Zinsniveau, in order to arrange the portions attractive. (e.g. 5%)

Obligations of the members

In case of the insolvency the shareholder clings to the bank not only with his (also with portions not up-paid yet) separates possibly also with an adhesion sum specified depending upon statute. One calls that liability to pay an additional amount. In practice this did not occur ever, since loan banks an insert contingency fund are attached, which substitutes in emergency.

Notice/death

The term of notice for is regulated in the statute of the loan bank: "“Each member has the right to quit its membership in the end of one financial year; the notice must be explained and be happened to the cooperative in writing at least three months (or e.g. six months) before conclusion of one financial year."” The "“argument assets"” developed then to the year end are disbursed after statement (thus permission) of the end-of-year procedure by the general or representative meeting. With death the membership turns into on inheriting and ends with the conclusion of the financial year in that the succession occurred.

Exclusion

The exclusion of a member is regulated in the statute. Usually this can take place only if the member offended against the statute, incorrect data concerning its financial conditions made or became insolvent. After "§68 exp. 1 sentence 2 GenG can be excluded members from a credit cooperative, if these are at the same time member in another credit cooperative.

Today's group

Germany (BVR)

• DZ BANK (Genossenschaftliche central bank and all financial transaction bank)
• WGZ BANK (Genossenschaftliche central bank in the Rhine country and Westphalia)
• VR LEASING AG (producer-independent leasing company)
• VR FACTOREM GmbH (Factoringgesellschaft)
• Union Investment AG (fund company for private and institutional investors)
• norisbank AG (offerer of consumer loans)
• Building society Swabian resound to AG (building society)
• German cooperative mortgage bank AG (mortgage bank)
• R+V insurance (insurance company)
• Munich mortgage bank EEC (mortgage bank)
• WL BANK LANDSCAPE soil credit bank AG (mortgage bank)
• GAD EEC (computing centre for north and West German area)
• Fiducia IT AG, Karlsruhe (computing centre for south and Central German area)
• CardProcess GmbH (technical Dienstleister map-supported exchange)
• Banking share company (Kreditdienstleister for the BVR)

Austria

• Raiffeisengenossenschaften in Austria
• Savings since bank (Austria)
• Cooperative bank (Austria)

Federations

• Federal association of the German people banks and Raiffeisen banks registered association.

Regional federations

• Cooperative federation of Baden registered association.
• Cooperative federation Bavaria registered association.
• Cooperative federation Frankfurt registered association (Hessen/Rhineland-Palatinate/Saarland/Saxonia/Thuringia)
• Cooperative federation Northern Germany registered association.
• Rheinisch cooperative federation registered association (RWGV)
• Cooperative federation Weser Ems registered association.
• cooperative federation - Raiffeisen/Schulze Delitzsch registered association.

Literature

• ZfgG - magazine for the entire Genossenschaftswesen

Related links

• http://www.vr-networld.de/ - Website of the people banks Raiffeisen banks
• http://www.sparda.de/ - Website of the group of the Spardabanken
• http://bundesrecht.juris.de/bundesrecht/geng/index.html Genossenschaftsgesetz GenG
• Homepage of the Austrian people banks
• Swiss federation of the Raiffeisen banks
• Raiffeisen Austria
• neuegenossenschaften.de - official Website for reestablishments of cooperatives.
• http://www.vr-karriere.de - job portal of the genossenschaftlichen financial federation
• http://www.aktive-buergerschaft.de - authority center for citizen commitment of the people banks Raiffeisen banks

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