The payout behaviour of German savings banks

Matthias Köhler

No 24/2016, Discussion Papers from Deutsche Bundesbank

Abstract: Our analysis finds that despite the growing number, the majority of savings banks currently do not make any payouts. Furthermore, savings banks distribute only a small part of their net profit to the shareholders. This means that they can still build up capital even if they make payouts. Savings banks also hold significantly more capital than is called for by the regulatory framework. Finally, the regression analysis shows that savings banks that have less capital distribute profits to their shareholders considerably less frequently. This correlation has intensified since 2009, even though the Savings Banks Acts (Sparkassengesetze) were relaxed in individual federal states. All in all, our results therefore indicate that payouts do not currently pose a threat to the capital adequacy of most savings banks.

Keywords: savings banks; distributions; capital adequacy (search for similar items in EconPapers)
JEL-codes: G21 G29 G35 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ban and nep-ger
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdps:242016

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