The group would like to modify the statutes of the cooperative for this purpose, reports Finanz und Wirtschaft.
The Raiffeisen group wishes to embark on unsecured loans to companies. For this purpose, the statutes of the cooperative must be modified, reported Finanz und Wirtschaft from Saturday. These statutes prohibit the group from granting this type of credit.
The statutes of the Raiffeisen banks prohibit the 229 banks of the group from granting unsecured loans and consequently the conclusion and development of profitable relationships with corporate customers, according to a document of which the magazine obtained a copy.
Unsecured loans offer more interest rates than mortgages, which is lucrative in today’s low rate environment. These credits are, however, riskier.
According to the document in question, 98% of the group’s banks are in favor of this type of credit. The objections come mainly from the smaller banks in the group.