Banken: Eigentümer der Volksbank Brawo billigen Stützungsmaßnahmen

Frankfurt – The representatives of the Volksbank Braunschweig Wolfsburg (Brawo) have approved the year-end results and thus the support measures by a large majority, the bank announced on Wednesday. This included the rescue of the bank through the safety mechanism of the industry association BVR. The safety mechanism will provide the Volksbank Brawo with up to 723 million euros, as reported last week.

Formal approval from the shareholders is still required to finalize the agreement. The bank will receive guarantees worth 473 million euros from the safety mechanism to protect against risks, particularly in the real estate sector, and to prevent losses. Additionally, the safety mechanism will inject shares worth up to 250 million euros, increasing the share of equity capital, as the bank would otherwise fall short of supervisory capital requirements.

Since early 2024, there have been several rescue cases in the sector of cooperative banks, with ten credit institutions totaling about 2 billion euros being rescued. The Volksbank Brawo is the largest rescue case, being significantly larger than the other rescued cooperative and Raiffeisen banks, with a total asset base of 6.5 billion euros.