Low rates weigh greatly on smaller German financial institutions

Low rates weigh greatly on smaller German financial institutions

Extremely low official interest rates keep putting pressure on Germany's smaller financial instructions, as a couple of watchdogs reported on Wednesday.

The Bundesbank and BaFin, Germany's bank regulators, polled about 1,500 small as well as medium-sized banks, which account for up to 88% of institutions and also 41% of total assets.

As the findings revealed, financial institutions actually expect pretax revenue to go down by an overall 9% for the next five years.

It corresponds to a 16% sag in the banks' overall return on capital. Well, while abrupt, it’s still is less than the 25% sag in return on capital actually anticipated in last poll conducted two years ago.

Some financial experts state that the phase of stagnation provoked by low interest rates appears to be far from over.

Additionally, the regulators appreciated the fact that German banks were looking for alternative sources of income just to withstand low rates.

 

Similar

Latest news

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera