Security reserve

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In the savings bank system, security reserve is the term for the equity capital of the public savings banks .

General

The subscribed capital is depending on the banking group's share capital ( joint stock banks ), capital (banks in the legal form of GmbH ), contingency reserve (public savings banks) or business assets / capital share ( cooperative banks ). This subscribed capital forms the basis for determining Common Equity Tier 1, which also consists of retained earnings , other reserves and the “Fund for general banking risks” (according to Section 340g of the German Commercial Code ).

history

Of the 112 savings bank statutes approved before 1890, 64 permitted the full transfer of the profits made to the municipality even with a security reserve of 5% of the balance sheet total , 47 allowed partial use for municipal purposes, and only one statute required the formation of a security reserve of 10% of the Total assets. On the other hand, 155 of the 230 savings banks whose statutes had been confirmed after 1890 had to put a full 10% in the security reserve before the savings banks could be made available to the communities. According to Art. 1 § 2 NotV3, the Reich Decree of October 6, 1931 brought about the legal independence of the savings banks across Germany as institutions under public law . For this legal form, a guarantor was (and is) required, which usually consisted of the respective municipality at the headquarters of the Sparkasse. The guarantor liability for Landesbanken and public savings banks of their sponsor was connected with the guarantor . This statutory subsidiary liability of the guarantor of a savings bank or Landesbank existed in the event that their assets were insufficient for the claims of their creditors . In the event of their insolvency or overindebtedness , the respective guarantor had to be liable for the creditors indefinitely, so that the amount of their equity capital was only of minor importance.

That changed in 2001, because the Brussels Concordance of July 17, 2001 provided that guarantor liability for savings banks and Landesbanken was to be abolished because of the subsidy problem. Therefore, the guarantor of public savings banks and Landesbanken is only called the carrier . Referring now to the regional savings bank laws, the ownership and responsibility is clarification controlled so that neither is a requirement of the carrier to provide the savings bank funds available, nor the support for the liabilities of the savings bank is liable (z. B. § 7. 2 Savings Bank Act NRW). As a result, the security reserve has increased significantly in importance.

Legal issues

The formation and increase of the security reserve is regulated very differently in content and scope in the savings bank laws of the federal states. Occasionally, the distribution of profits is based on the ratio of the security reserve to the balance sheet total. For example, Section 31 (2) of the SparkG BW stipulates that the annual surplus is to be transferred in full to the security reserve until it reaches 4% of the balance sheet total. If the security reserve is below 10% of the balance sheet total, 50% of the profit must be reinvested. In NRW, on the other hand, there are no regulations on the amounts to be added to the security reserve, because Section 25 (1c) SparkG NRW only provides that the amounts to be allocated to the security reserve or a free reserve must be stated in the profit appropriation decision. Since the public bodies are not allowed to contribute equity because of the Brussels Concordance, the public-law savings banks are largely dependent on retained earnings ; however, third party shareholders are permitted under savings bank law. Some SparkGs provide for contributions by silent partners , profit participation rights or even subordinated liabilities to improve the liable equity capital (§ 26 SpkG NRW). The scope of regulation ranges from non- fungible carrier capital (Section 7 (1) SpkG NRW) to fungible share capital (Section 3 (3) and (4) SpkG RP).

Functions

Like the own funds of the other banking groups, the savings banks' security reserve also fulfills several functions:

  • Founding function : According to Section 33 (1) No. 1 KWG, the establishment of a savings bank requires “sufficient initial capital, consisting of core core capital”, which for CRR credit institutions must amount to at least 5 million euros (Section 33 (1d) KWG). The start-up capital is used, among other things, to finance the first start-up investments.
  • Financing function : On the one hand, equity finances long-term property, plant and equipment and the investments of savings banks within the framework of the golden balance sheet rule ; on the other hand, these balance sheet items are included in the central concept of the risk position , which must be backed by own funds.
  • Liability function : own funds should serve to absorb intertemporal losses and protect depositor . Any losses incurred are absorbed by equity. The higher the equity, the longer a company can cope with persistent losses without falling into a corporate crisis. Since equity is “at the very end of the rankings of liquidation or insolvency-related repayment”, it is liable to the creditors and thus ensures the basis of creditors' protection.
  • Limitation function : The amount of own funds generally limits the possible business volume and especially the risk positions of a savings bank. Building up a loan portfolio is only permitted up to a specified limit for the core capital ratio that is dependent on the equity capital . Large exposures are subject to a specific limit , the amount of which according to Art. 392 CRR may not exceed 10% of the eligible capital.
  • Representation and advertising function : The absolute amount of own funds as risk capital can be presented to the public with the help of advertising and create trust in the solvency of the institute. The core capital ratio allows conclusions to be drawn about the quality of an institution. The available own funds are an essential criterion for creditworthiness .

Accounting

The regulatory recognition of the security reserve as hard core capital is based on Art. 27 Para. 1a, Art. 28 Para. 1 Capital Adequacy Ordinance (CRR). This makes the security reserve the most important reference value for the risk positions and large loans of a savings bank.

Due to the unified accounting security reserve rules for banks show financial institutions under the item retained earnings . This results from Section 25 (2) RechKredV , according to which the security reserve of the savings banks and the profit reserves of the credit unions are to be shown under the revenue reserves in sub-item letter c.

See also

literature

  • Beck, Samm, Kokemoor: Law on the Credit System . KWG commentary with materials and additional regulations. CF Müller, Heidelberg February 2008, ISBN 978-3-8114-5670-9 , loose-leaf collection, 129th update

Web links

Individual evidence

  1. ^ Adolf Trende, History of the German Savings Banks up to the Beginning of the 20th Century , 1957, p. 537
  2. ^ Christian Lütke-Uhlenbrock, evaluation of public-law savings banks , 2007, ISBN 3-8350-0680-0 , p. 167 "Google Book Search"
  3. ↑ Sparkassengesetz NRW ( Memento of the original dated June 7, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.landtag.nrw.de
  4. ↑ Sparkassengesetz Rhineland-Palatinate
  5. ↑ Wolfgang Grill / Ludwig Gramlich / Roland Eller, Gabler Bank Lexikon: Bank, Börse ,finanz , 1995, p. 495 ff.
  6. ↑ Günter Wöhe, Introduction to General Business Administration , 25th edition, 2013, p. 542
  7. ↑ Horst S. Werner, Equity Financing , 2006, p. 23
  8. ^ Peter Rösler / Thomas Mackenthun / Rudolf Pohl, Handbook of Credit Business, 2002, p. 110 f.