Bank Management

1.2 Basic Structure of the German Banking
System
1.2.3 Specialized p Banks
Realkreditinstitute
Long-term housing credits and state financing
Former: Privilege to refinance through PPfandbriefe
and Kommunalobligationen on the
capital market (similar to covered bondss)
Deregulation led to very risky new businness
models (see HRE scandal)
Bausparkassen
Idea of an autarkic community of savers s to finance private housing
Autarky as basis for interest rate guaranntees,
but uncertainty about the date of the
granting of the loan
“Learning contracts”, as debtors prove ttheir
ability to save before getting the loan
Seemingly fragile business concept, buut
strong resilience in the crisis
Prof. Dr. Hans-Peter Burghof, University of Hohenheim, Bank Management
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