Interest rate turnaround inspires VR Bank: More customer money in fixed-interest securities

Interest rate turnaround inspires VR Bank: More customer money in fixed-interest securities

VR Bank Starnberg-Herrsching-Landsberg is experiencing a renaissance of the savings bond due to the change in interest rates. In 2023, the bank invested client assets in fixed income securities on a large scale, after years of restraint. This shows a return to the traditional savings bond as an investment instrument. The board described the past year as solid and emphasized that the bank is currently not planning any further changes to its branch network, which includes 22 staffed branches, twelve self-service branches, eight video service counters and 37 ATMs. The bank's preliminary balance sheet total amounted to around 3.2 billion euros, with real estate business expected to pick up in the current year.

However, interest rate developments also have an impact on the real estate market, with investors and developers reacting hesitantly. Due to general market developments, the bank's board of directors predicts that the European Central Bank will cut interest rates in the summer, which could lead to a revival in the real estate sector. The bank plans to prepare for an eventual recovery, but remains regional and conservative in its financing strategy. Despite financial challenges in the construction industry, VR Bank intends to strengthen its regional ties by increasing the number of members from the current 28,500 to 40,000.

The bank emphasizes its members as a central element of its business activities and is therefore clearly different from other financial institutions. This cooperative principle is also reflected in a stable personnel structure, as the bank is currently not experiencing any staff shortages. With a total of 390 employees and 20 trainees in the region around Lake Starnberg and Ammersee, the bank is well positioned to meet the needs of its customers and to continue to operate successfully in the future.