Pfandbrief bank

from Wikipedia, the free encyclopedia

A mortgage bank is a financial institution whose banking business , the mortgage business includes serving as refinancing for the lending of property used. Until 2005, Pfandbrief banks were known as mortgage banks .

species

In banking , there are two types of mortgage banks. As specialist banks , they only operate real estate financing that is refinanced through the issuance of Pfandbriefe and mortgage bonds . But also universal banks ( large banks , Landesbanken , savings banks , cooperative banks ) are allowed to operate the Pfandbrief business in this form - along with other banking business - and are then called "mixed Pfandbrief or mortgage banks". The active business of the pure Pfandbrief banks as real estate credit institutions is limited to mortgage loans in which only mortgages on domestic and foreign land and land rights on residential or commercial property serve as collateral . The deposit business in turn largely ensures congruent refinancing. Pfandbrief banks are the most important banking group among the specialist banks in Germany.

history

The Prussian mortgage and bankruptcy code of April 14, 1722 regulated the mortgage system for the first time. It stipulated that a complete land and mortgage book should be set up at every court dealing with the mortgage system, which should contain all real estate in the district with precise names and numbers. The name of the owner, the purchase title and the purchase price had to be attached to each property. In April 1748, the system of classification of creditors, taking into account the reason for debt, was eliminated and replaced by a pure priority principle based on the date of entry . It was now essential that the mortgagee should be entered first. Obviously the first mortgage bank - and thus Pfandbrief bank in today's sense - was the Schlesische Landschaft founded in June 1770 , a cooperative public-law credit institution that lent 50% of the aristocratic real estate value and refinanced these loans with bearer Pfandbriefe. It was followed in June 1777 by the Kur- und Neumärkische Ritterschaftliche Kreditinstitut , then the landscapes in Pomerania in March 1781, West Prussia in 1787 and East Prussia in 1788. The mortgage regulations of December 20, 1783 specified the previous law and dealt with the pledging and assignment of mortgages . In July 1820 originated in France , the Caisse hypothécaire but in 1940, concluded. The Groning landscape was created in Holland in 1823 based on the German model of the “landscapes” .

On the basis of a law of February 28, 1852, which regulated land loan companies for creditors and debtors in France, the first mortgage bank in the legal form of a joint stock bank was the Banque Foncier , founded in Paris in July 1852 , which expanded to all departments and then expanded Crédit Foncier de France called. The Allgemeine Deutsche Credit-Anstalt in Leipzig, founded in 1856, took over the function of a mixed mortgage bank in 1858, followed by Hypothekenbank Frankfurt in December 1862 . When Bayerische Hypotheken- und Wechselbank received the right to issue Pfandbriefe in 1864, the institute, which had already been founded in 1835, became a mixed mortgage bank. From 1862 on, around thirty mortgage banks had been founded in Germany within a short time. They granted mortgage loans to the landowner and refinanced themselves by issuing Pfandbriefe. The business activity of only a few of these banks was limited to the mentioned sectors; rather, their statutes permitted further, in some cases all types of banking business. In 1894, the architect Hermann Otto Pflaume built a representative three-story bank building for the recently founded Rheinisch-Westfälische Boden-Credit-Bank in Cologne's bank mile Unter Sachsenhausen 2 .

At the end of the 19th century there were 40 mortgage banks in Germany with a loan portfolio of 5.9 billion marks, 29 of which were purely mortgage banks and 11 were mixed mortgage banks. On July 13, 1899, Kaiser Wilhelm II sanctioned the Mortgage Bank Act (HBG), which came into force on January 1, 1900 as a special institute law. In the context of creditor protection, it served to protect Pfandbrief creditors and applied to mortgage banks organized under private law and credit institutions under public law. These special credit institutions named themselves mortgage banks after him . The Deutsche Genossenschafts-Hypothekenbank AG (DG-Hyp) was only founded in May 1921 and is part of the cooperative network . In December 1927, the Public Pfandbrief Act (ÖPG) came into force, which secured the privilege of satisfaction of the Pfandbrief creditors; in April 1943, the Schiffsbank Act regulated this special branch of mortgage loans. The Pfandbrief Act (PfandBG) , which has been in force since July 2005, summarized these special provisions , especially since the special banking principle no longer had to be adhered to due to the strengthening of the cover pool through the last amendment to the HBG and the ÖPG in April 2004. The PfandBG therefore enables all credit institutions to issue Pfandbriefe if the legal requirements are met. In addition, the PfandBG introduced a name change to Pfandbrief banks, while the previous mortgage banks were allowed to keep their name, their banking license is still granted under Section 43 PfandBG and their business can continue to operate under Section 50 PfandBG.

Legal issues

Pfandbrief banks are credit institutions because they operate the Pfandbrief business in accordance with Section 1 Paragraph 1 Sentence 2 No. 1a KWG . This has been expressly made clear by the legislator. In addition to the KWG, the PfandBG also applies to Pfandbrief banks. According to Section 1 (1) of the PfandBG, the Pfandbrief business consists of the

  • Issue of covered bonds on the basis of acquired mortgages under the designation Pfandbriefe or Mortgage Pfandbriefe,
  • Issue of covered bonds on the basis of acquired claims against government agencies under the name of municipal bonds , municipal bonds or public Pfandbriefe,
  • Issue of covered bonds on the basis of acquired ship mortgages under the designation ship Pfandbriefe ,
  • Issue of covered bonds on the basis of acquired registered liens in accordance with Section 1 of the Law on Rights to Aircraft or foreign aircraft mortgages under the designation aircraft Pfandbriefe.

The requirement of core capital of at least 25 million euros in accordance with Section 2 (1) of the PfandBG is justified by the long-term nature of the loans granted and the issuing periods of the Pfandbrief business. The issued Pfandbriefe serve to refinance the lending business (legally called "cover assets"), which according to § 4 Para. 1 PfandBG must exceed the volume of the Pfandbriefe by 2% ("securing excess cover"). This surplus cover may only exist in bonds from certain countries , their regions and institutions or bank balances with central banks of the European Union . In addition to the Pfandbrief business, derivatives (pursuant to section 1 (11) sentence 3 number 1 KWG) with which the interest rate risk can be excluded may be concluded; their share is limited to 12% of the Pfandbrief volume. Other cover assets are selectively permitted in Section 19 of the PfandBG; they must not exceed 20% of the Pfandbrief volume. According to Section 5 of the PfandBG, the bank must keep a cover register in which the credit transactions including derivative claims are to be entered. It is to be monitored by a trustee ( § 8 PfandBG).

Property liens may be registered in Germany and comparable foreign legal systems. According to Section 13 (1) PfandBG, this includes the EU member states or another signatory to the Agreement on the European Economic Area , Switzerland , the United States of America , Canada , Japan , Australia , New Zealand and Singapore . According to § 14 PfandBG, the lending limit is 60% of the lending value . § 18 Pfandbrief Act clarifies that mortgages ( land charges ) as well as mortgages come as a backup values into consideration. In the lending practice of credit institutions, land charges against mortgages are the norm because of their lack of accessoreity to loan debt . Since the PfandBG grants the Federal Financial Supervisory Authority (BaFin) more extensive supervisory powers, mortgage banks are subject to stricter banking supervision than the other credit institutions. Pfandbrief banks are obliged to regularly determine and report the average loan-to-value ratio for the cover pool of their mortgage Pfandbriefe .

In addition, the BaFin, in accordance with European law, presupposes that the credit institution applying for a Pfandbrief license also has a license for the bank due to the jurisdiction regulation of Art. 4 Para. 1a of Regulation (EU) No. 1024/2013 (SSM Regulation) as a previously unwritten factual feature Deposit business (section 1 (1) sentence 2 no. 1 KWG) has, since at least the issue of registered Pfandbriefe qualifying as secured deposits is a business that, together with the granting of loans on its own account, the activities of a credit institution within the meaning of Art. 2 No. 3 of the SSM Regulation in conjunction with Art. 4 (1) No. 1 of the Capital Adequacy Regulation (CRR), for the approval of which the ECB is responsible. Furthermore, the credit institution must have a risk management system in accordance with Section 27 PfandBG that is suitable for managing, monitoring and controlling the risks for the cover pools and the issuing business based on them.

Banking aspects

The Bank Management examined in particular the differences between universal banks and specialized banks. As a rule, universal banks have a much larger company size - measured in terms of total assets or business volume - than specialist banks. The main difference between the two is business risk . If the company is the same size, a specialist bank usually has a higher risk than universal banks, because the latter are better able to process economic risks thanks to their broader range of products and customers. The one-sided concentration of the specialist banks on certain banking transactions and / or customers means that the necessary diversification and spread of risks is lacking; there is usually a lack of granularity with a simultaneous risk of cluster risks . This applies in particular to the existing loan portfolio . Special banks may not be able to react to changes in the market, especially if their business purpose is restricted by law. Specialist banks turned out to be "trouble spots", as there is a "considerable coincidence between financial crises and the separate banking system ". This was during the financial crisis from 2007 clearly as US mortgage banks in mortgage lending because of a housing bubble got into crisis because the vast majority of its borrowers , the interest level related high lending rates could not pay. Since mortgage banks or building societies only have real estate customers as borrowers and loans secured by real estate with a high positive correlation to the real estate market , it is not possible to balance risks through other groups of borrowers and industries. The deposit business of the Pfandbrief banks is also at risk in a crisis if the Pfandbrief creditors want to sell their Pfandbriefe on the capital market like in a bank run.

The special products offered by Pfandbrief banks can be produced inexpensively through mass production ; they can pass these cost advantages on to the market. Special banks typically protect themselves against interest rate risks , credit and special banks often have more intensive proprietary trading than savings banks and cooperative banks . Because of the specialization, your employees can acquire in- depth specialist knowledge that can contribute to a particularly high level of customer benefit. In any case, the limited scope of their banking business enables careful and effective banking supervision . If the company is small, rescuing it during a banking crisis is associated with less financial outlay than with universal banks.

International

Pfandbrief banks are also known abroad. In most European countries there is a special name for the Pfandbriefe covered by real estate, which is regulated by special laws in Austria , France , Denmark , Greece , Italy , Spain , Sweden and Germany. In Austria only a small number of mortgage banks are allowed to issue Pfandbriefe. The mortgage banks are not allowed to issue more Pfandbriefe than are covered by mortgages of the same amount (“ordinary cover”). France has known the “Obligation Foncière” since December 1988, which is issued by the “Crédit Foncière de France” (CFF). Since December 1998 there has been a specific legal framework for mortgage banks in France.

The two largest mortgage banks in the USA, Fannie Mae and Freddie Mac , were insolvent in August 2008 after the financial crisis in 2007 , so that the US government had to step in with state aid. In England in September 2007, the Northern Rock mortgage bank had to be supported with an emergency loan from the Bank of England . When the liquidity problem of the mortgage bank became known to the public, thousands of customers stormed the bank branches; the bank run resulted in the withdrawal of £ 2 billion in two days. In February 2008, Northern Rock was nationalized.

Association

A total of 41 German Pfandbrief issuers have joined forces in the Association of German Pfandbrief Banks (vdp), which until July 2005 was called the Association of German Mortgage Banks (VDH).

See also

Web links

Individual evidence

  1. ↑ Stefan Kofner , Housing Market and Housing Industry , 2004, p. 95.
  2. ↑ Leopold-Michael Marzi, The Law of the Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 7.
  3. ^ Association for the History of the Mark Brandenburg, Research on Brandenburg and Prussian History , Volume 46, 1934, p. 38.
  4. ^ Leopold-Michael Marzi, The Law of Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 8.
  5. ↑ Leopold-Michael Marzi, The Law of the Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 13.
  6. ^ Karl Heinrich Rau, Principles of Economic Policy , 1854, p. 224.
  7. ↑ Leopold-Michael Marzi, The Law of Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 20.
  8. ^ Anton Pavlicek, Das Pfandbriefrecht , 1895, p. 21 f.
  9. ↑ Dieter Bellinger / Volker Kerl, Hypothekenbankgesetz , 1995, p. 27.
  10. ^ Leopold-Michael Marzi, The Law of Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 93.
  11. ↑ BT-Drucksache 15/4321 of November 29, 2004, draft law for the reorganization of Pfandbrief law , p. 21.
  12. ↑ BT-Drucksache 15/4321 of November 29, 2004, draft law for the reorganization of Pfandbrief law , p. 29.
  13. ↑ BT-Drucksache 15/4321 of November 29, 2004, draft law for the reorganization of Pfandbrief law , p. 33.
  14. ↑ Tobias Koppmann, Covered Bonds in Germany and Great Britain , 2009, p. 94.
  15. ↑ BaFin, information sheet - Notes on the facts of the Pfandbrief business from January 6, 2009 , last amended on September 14, 2015
  16. ↑ George J Benston, Universal Banking , in: Journal of Economic Perspectives Vol 8 (3), 1994, pp. 121-143
  17. ↑ Martin Kohlhaussen , The countries with a separate banking system in particular have proven to be trouble spots , in: Handelsblatt No. 92 of May 13, 1993, p. B12 / B14
  18. ↑ Hilmar Kopper , The universal bank is not a discontinued model: Resistance to crises as a trump card , in: BZ No. 67 of April 5, 1995, p. 26
  19. ↑ Denis Reichel, The Marketing Future of Financial Service Providers , 2007, p. 10.
  20. ↑ Deutsche Bundesbank, Financial Stability Report 2013 , November 2013, p. 47.
  21. ↑ George J Benston, Universal Banking , in: Journal of Economic Perspectives Vol 8 (3), 1994, p. 123.
  22. ↑ Helmut Kaiser / Anja Heilenkötter / Markus Herrmann / Werner Krämer, Der Euro-Kapitalmarkt , 1999, p. 89.
  23. ↑ in addition to the 8 state mortgage banks, Bank Austria , Erste Bank and the Pfandbriefstelle of the Austrian state mortgage banks
  24. ↑ Eberhard von Eine, Wohnen , 2016, p. 175.
  25. ^ VDP, member institutes