I sat and read through a Focus article on Germany banking.
Around 700 Volks and Raiffeisen banks with 15 million German members are coming under pressure because of the economic slowdown, shaky lending practices, and poor judgement over loans.
Some institutes are facing restructurings....others had to be propped up by the security fund after billions in losses.
What Focus points out....regional banks are gambling in various ways....some on real estate....some over brothel purchases, some involving soccer club financings, and control failures.
In some ways....what the article points out...risky behavior is increasing.
If German banks reach a point of serious damage? Well....the Deutsche Bundesbank acts as a 'Federal Reserve' and would likely inject money, and mandate tighter controls.
But at that point....real estate issues will pop up and more serious economic problems will spiral into the situation.
No comments:
Post a Comment