The German Federation of Popular and Cooperative Banks (BVR) has intervened again to support Bankhaus RSA, a German cooperative bank in financial difficulty. The chairman of the board, Klaus Hatzel, stated that the bank is undergoing a restructuring process as it cannot meet the legal capital requirements. BVR announced that it will provide financial support to stabilize the bank, and the details of the intervention will be communicated at the general assembly in November.
Investigations have identified major risks, including a rapid increase in the loan portfolio, which has disrupted the ratio of loans to equity. This situation has been exacerbated by high interest rates and declining real estate values. BVR has also intervened for four other cooperative banks in the past year, at a total cost of 1.3 billion euros.
For Bankhaus RSA, a merger solution with Meine Volksbank Raiffeisenbank Rosenheim is becoming increasingly likely, and the bank has already signed a cooperation agreement. Personnel changes in management are intended to facilitate recovery. Bankhaus RSA, established in 1899, offers a wide range of financial services, including private accounts and real estate financing.
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