What thoughts crossed your mind when the lockdown was passed across the country in March?
Michael Wertli: My first thought was what that means for us as a bank, the employees and the local economy. And I wondered how this would affect those people who fear for their jobs and for their existence.
What immediate measures did you take?
We made sure that our customers got their Covid loans quickly and easily. The fastest loan disbursement was completed within six minutes. Of course, we made sure that the companies were entitled to this reference. It would have been a game for time if we had paid out a loan to those companies that were already doing badly before the crisis.
How could you be sure that all borrowers were eligible?
The sheer volume of loan applications made it impossible to scrutinize them all. That wasn’t our job either. However, the companies had to contact their house bank to get a loan. We know our customers. This enabled us to assess whether the framework conditions for lending were met.
What is the loan amount that you have given in Freiamt?
We spoke 40 million francs within a few weeks. If you consider that other banks have also granted loans in Freiamt, then that is an impressive number.
Surely there were customers who tried to make money that way?
There are black sheep everywhere. Wherever we suspected we would talk to them. In the vast majority of cases, we were able to resolve the situation in this way.
How are the small and medium-sized companies in Freiamt?
Companies from the event, catering and retail sectors were already affected in spring and are now again. These companies have lost sales that they can no longer compensate for. You start the new year with a heavy backpack. In addition, those companies that have taken out a Covid loan have to repay it within four and a half years. I have great respect for that.
Corona has not only produced losers …
There were companies that adapted their business model. Others benefited from the crisis, for example online providers. Basically, anyone who has been able to create a financial cushion will get through the crisis more easily.
Bankruptcies will be inevitable. Can you estimate what is in store for us?
That is difficult to say. I am surprised that the number of bankruptcies has not yet turned out to be greater. Short-time working allowances, Covid loans and compensation for the self-employed have cushioned this. However, it can be assumed that a major wave of bankruptcies will come our way. Associated with this is an increase in unemployment.
The prospects are dire.
I wouldn’t say that. Experience shows us that every crisis brings with it a structural adjustment. It won’t be any different with the current pandemic. Therefore the economic system does not need to be questioned.
How do you experience your customers? Are you optimistic?
Private individuals and companies consume and invest less and more cautiously. The fear of losing your job or having to liquidate the company is on many people’s necks.
How should you invest your money profitably?
There is never a guarantee of a return. But long-term investments in the stock market often bring more profit than the money in the savings account. Due to inflation, you lose money with account balances, as purchasing power is reduced. In the past few years, however, we were able to record marked increases in securities investments due to the phase of low interest rates.
The demand for real estate has also increased markedly.
Property prices in Freiamt have risen above average compared to the canton, and demand has remained unchanged. We have had immense growth in the mortgage sector over the past few years, which continues unabated.
It was in your hands that NAB is significantly reducing its branch network in Aargau and changing its name. Surely that brought new customers?
That is undisputed, we had a significant influx of customers. We are a regional bank that makes its decisions on site, which is appreciated by many customers. We are holding on to our five locations in Freiamt.
Corona continues to concern people. How do you assess the future prospects?
We think the economy can slowly stabilize once the vaccinations start. The heavy sales losses will probably not be made up for until 2022. Then we also expect stabilization. So it still takes some time – but we see light on the horizon.
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