Security despite losses: VR-Bank Schmalkalden-Meiningen is not insolvent for the time being

Security despite losses: VR-Bank Schmalkalden-Meiningen is not insolvent for the time being

According to a report by www.tagesschau.de, Bafin special representative Christian Gervais sees no risk of insolvency for VR-Bank Schmalkalden-Meiningen despite losses. The protection facility of the Federal Association of Volksbanks and Raiffeisenbanks (BVR) would be available to support the bank if losses occur. Gervais emphasized that neither the bank's shareholders, customers nor business partners will lose money.

However, the bank's economic situation remains unclear as the business balance sheet is not yet available. The special representative expressed caution and only indicated that there would be a significant loss in the past financial year. More detailed information could only be provided after the business balance sheet has been presented. Work is currently underway on restructuring measures for the bank.

A few weeks ago, the bank was criticized for a lack of risk provisioning and calls were made to increase the equity ratio. After the previous bank board member resigned, BaFin appointed the special representative. However, he does not see any malicious intentions on the part of BaFin that would like to harm the bank. Merger talks with other banks in the cooperative sector should also not be held.

Based on my financial expertise, it is always important that measures are taken in the event of possible losses or uncertainties in a bank to ensure the stability and security of customers and business partners. In this case, it is reassuring to hear that the BVR protection facility is available and the bank is supported by a special representative. However, the exact impact on the market or the financial sector depends on the bank's actual financial situation, which can only be assessed after the business balance sheet has been presented. It therefore remains to be seen how the bank will develop further.