Building associations; in the U.S. also sometimes referred to as savings and loan associations, homestead associations

Capital collection points with long-term fixed interest rates for the savings and redemption period. Their sole purpose is to finance home ownership. In the ECB statistics, they are included in the money creation sector, i.e. they are monetary financial institutions. – However, the share of Bausparkassen in the MFI sector in the euro area as a whole is minimal; measured in terms of total assets, it is around one percent. – In Germany, the bauspar business is the only permissible type of special-purpose savings at all. A separate Bausparkassen Act (BSpKG) and an ordinance to protect the creditors of bausparkassen (Bausparkassen-Verordnung [BausparkV]) regulate the bauspar business. It is subject to licensing and may only be operated by bausparkassen subject to supervision; cf. because of the protection of designation § 40, para. 3 KWG. The rates of the bausparkassen must be approved by the Federal Financial Supervisory Authority. Nevertheless, banks are also allowed to act as construction financiers, i.e., to grant loans for the construction of houses. – See acquisition fee, construction industry, construction money, building savings, concrete gold, valuation, land credit institution, mortgage bank, package loan, housing loan, interest rate risk, special-purpose savings institution. – Cf. for Germany the finely structured home savings statistics in the respective statistical section of the Deutsche Bundesbank’s Monthly Report, heading “Banks,” subheading “Major assets and liabilities of banks (MFIs) in Germany by banking group,” and on supervisory issues and legal developments in the respective annual report of BaFin. – See also BaFin’s 2005 Annual Report, p. 127 (simulation models for risk identification at Bausparkassen; conditions for abolishing the requirement that new tariffs may only be introduced after approval by BaFin), BaFin’s 2006 Annual Report, p. 128 (deregulation of supervision), ECB Monthly Report of October 2007, pp. 89 f. (housing loans to households compared with other sizes; overviews), BaFin Annual Report 2008, p. 11 (amendment of the Bausparkassen Ordinance), BaFin Annual Report 2009, pp. 126 f. (Unification of maximum amount limits for unsecured loans; allocation amounts to the fund for bauspar technical security), p. 129 (Number of bausparkassen in Germany), BaFin Annual Report 2011, p. 150 (Number of bausparkassen remains at thirteen private and ten public institutions), p. 160 (increase in volume of home savings, but decline in home savings loans because other real estate financiers appear to be more favorable), Financial Stability Report 2013, p. 54 (problems faced by home savings banks in the face of low interest rates).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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