Introduction - Genossenschaftsverband Bayern

anks and Raiffeisenbanks that protects the deposits of the customers
during crises. Moneys paid into a pool serve to secure the survival
of the bank in times of business problems. Insolvency of a bank
cannot happen. Customers can always rely on the existence of their
bank and on the safety of their deposits. Bavarian cooperative banks
offer absolutely reliable partnership to their customers and thereby
stand for continuity. Continuity, reliability and trust are the fundamental
building blocks of a positive macroeconomic development.
The individual bank benefits from this development. Stable customer
relations resulting from a clear market strategy have a positive
influence on the earnings of a bank. This is shown in research paper
of the IMF. (Hesse, H.; Cihak, M.: Cooperative Banks and Financial Stability,
2007) In the medium and long run, the development of cooperative
banks is much more stable than of commercial banks. To quote
the IMF study mentioned above on page 12: “We are (…) observing a
lower variability of returns in cooperative banks than in commercial
banks.” This stability is another effect of the flexible payout policy of
the cooperative banks to their members. It contributes to the solidity
of cooperative banks that members support their cooperative banks
as shareholders in their long-term business orientation. It should be
mentioned in particular that the cooperative shareholders would in
economically difficult times also accept lower interest payments on
their cooperative shares.
The continuity-oriented business strategy of the Volksbanks and
Raiffeisenbanks is also confirmed by Standard & Poor’s rating. The
Bavarian cooperative banks were first rated in December 2006 with
a rating of “A positive” and have a current rating of “A+ stable”.
A total of 7 million Bavarian customers today put their trust in the
Bavarian Volksbanks and Raiffeisenbanks.
30 IV Economic contribution