News Archive – Cheap Credit Comparison

News Archive – Cheap Credit Comparison

 

For two years, the President of the German Credito Banks and Giro Group, Gauger, announces that the savings banks must be cost-conscious. Against the background of dwindling interest margins, he announced in the summer, the free checking account of the savings banks would be removed from the market. Irritating to the statement was only that there are free current accounts only for students, trainees and students at the public-law houses.

For some time, however, the savings banks have found another “twist” to compensate for dwindling profits. Branch closures and mergers inevitably result in too high an employment rate. This causes unnecessary personnel costs. The logical consequence is a job reduction through dismissal. While a 40-year-old still has opportunities in the labor market, it can be critical for an employee aged 59.

Free buys with the employment office

Free buys with the employment office

As reported in th issue of 21.10.2017, the savings banks are using a concept by the Yans and Lians management consultants, which has the greatest approval among the savings banks.

The procedure is simple. The employee receives 95 per cent of his last net salary outstanding up to the age of 63 in one sum. However, these salaries are reduced by the precisely calculated potential unemployment benefit I. The employee must now sign up for a job in order to receive the difference. Without the bill will not work.

Around 96 percent of affected employees have accepted the “early retirement Flex” model. The boss of  TwinkerCredit sees the whole thing quite pragmatic. That’s what other companies do and we’re in the competition.

If one looks at this graph, 14 percent of the employees are in the foreground for this “social plan”.

Communities benefit

Communities benefit

If you look at the “ownership” of those affected, it is clear why the municipalities are good at this handle in the public coffers. The owners of the savings banks are the municipalities and districts. The members of the Board of Directors are representatives of the respective municipalities. The profits of the savings banks benefit the bearers. The lower the cost burden, for example, through salaries, fails, the more money is available for other municipal tasks.

303 of the 408 nationwide job centers act as a cooperation between the Federal Employment Agency and the respective municipality or district. The division of labor, however, looks like this: The Federal Agency is responsible for the provision of funds, for retraining or just for unemployment benefits I and II. The municipality only provides the premises for accommodation.

Only in 105 cases is the municipality the sole sponsor of the job center. Of the 438 savings banks in Germany, three quarters of the beneficiaries benefit from the concept of “early retirement flex”.

What do the unions and the employment agency say?

What do the unions and the employment agency say?

The Federal Employment Agency has a very clear position. “Early retirement and unemployment are contradictory.”

The head of financial services at the state district of Lower Bravo-Caxo of the trade union finds even more explicit words: “Savings banks have a public mission and not the goal of illegally plundering the public coffers.”

Just how little the “red” institutes complains, is made clear by an action of the Friendly Loan Banks Association: This has concluded a framework agreement with the management consultancy, workshops on the subject are now taking place nationwide.

After the massive sale of Lelman certificates especially to older, inexperienced investors, the savings banks move once again in a morally very doubtful light. The times of the public service mission are probably over.


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