banks have a separate status in the German banking system, in addition to the cooperative banks. Their main activity is not to reap huge profits through staple food or currency speculation, but to do much more for the common good of citizens.
Conditions of the bank loan for private individuals
Increasingly high profit expectations and ever-increasing competitive pressure have made it increasingly difficult for public-sector banks to keep up with the terms and conditions of private credit institutions. Smaller institutions, such as banks, are still forced by their size to charge fees on accounts. deposits are not as high interest rates as the private banks.
For loans, however, the banks can keep up. The banks are also competitive in the area of mortgage lending and installment loans. In addition, the Internet subsidiary 1822direkt.com not only the banks credit, but also provide cheap loans from other institutions. Due to the regional independence, the terms and conditions may differ throughout Germany. The interest rate should align, as with private houses, the key interest rate of the European Central Bank.
Lenders can offer private customers banks between 1,000 and 80,000 euros, with maturities of 12-84 months. The banks also offer an attractive range of loans, also through the link with their internet service. Especially through its branch network it impresses with its customers by competent, customer-oriented advice.
Real estate financing of the banks
In the wake of the financial crisis and the Lehman bankruptcy, some commercial real estate financiers had to significantly reduce their holdings. The banks were also able to profit from this emerging gap. Since 2008, the portfolios of real estate loans have increased to 15 billion euros. The share of Landesbanks and commercial banks in all loans granted is 17 percent each. The banks have been able to catch up a lot for some years and give about 25 percent of all loans in Germany. Due to the new and stricter legislation of the legislature, the business in housing finance is becoming increasingly interesting. The banks were also able to expand their business in this segment compared to insurers and private banks.
Responsible action of the banks
An important point is the business model . Gaining profits is not the highest premise, as is the case with private institutions. In the case of profit distributions, banks as well as cooperative banks stand up for the common good. They contribute to the economic success of the regional economy and the middle class. These motives are often crucial in lending.
Stronger lending by banks
Due to the continuously increasing market share and the responsible actions of the banks, it is still attractive to pay attention to the credit offers . Smaller money houses are not so heavily involved in the banking crisis. This provides you with more security and more confidence in your customers. The liquidity situation of the banks is very comfortable, which makes longer-term contracts attractive.