Institutions founded in Germany as early as 1895 with the purpose of improving the supply of credit to small and medium-sized enterprises. They have a reputation for being close to their customers, but their staff are often considered to be less qualified; they are therefore subject to special scrutiny by the supervisory authorities, and supervisory complaints remain at a high level. – On the other hand, during the financial crisis that followed the subprime crisis, cooperative banks proved to be risk shielded and thus stabilizing for the financial system as a whole due to their local ties and the small size of the institutions. – In 2013, the cooperative banks had a share of about fifteen percent – in terms of business volume in Germany. – See recall injunction, three-block, three-pillar model, union bank, Volksbank. – Cf. BaFin Annual Report 2002, p. 58 (complaints), p. 64 ff. (p. 65: statistics); BaFin Annual Report 2003, p. 94 f., BaFin Annual Report 2004, pp. 112 ff. (p. 114: “serious complaints” at 134 cooperative banks); BaFin Annual Report 2007, p. 121 (number of institutions almost halved between 1998 and 2007), pp. 134 (37 institutions had serious objections with dismissal orders against managers), BaFin Annual Report 2009, p. 10 (core capital calculation at cooperative banks), p. 169 (audit exemptions), BaFin Annual Report 2011, p. 161 (upcoming burdens as a result of new regulatory requirements), p. 165 (special audits at cooperative banks top the list), p. 169 (cooperative banks also top the list for serious complaints), BaFin Annual Report 2013, p. 94 (number of cooperative banks 2003-2013), and the respective BaFin Annual Report, chapter “Supervision of Banks, Financial Service Providers, and Payment Institutions.”
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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