Volksbank Cochem shines: positive numbers despite challenges!

Volksbank Cochem shines: positive numbers despite challenges!

The United Volksbank Raiffeisenbank eG presented its positive balance for 2024 at a press conference. As rhein-zeitung.de reports, the bank customers are increasingly becoming more powerful facilities. Despite a demanding economic environment, this is done in which the bank was able to increase its essential key figures. A branch of the bank is in Cochem, which benefits the local customer group.

The banking sector is faced with a variety of challenges, as the Deloitte Banken-- und Kapitalmarket outlook clear. The global economy is slow and divergent, which brings new risks for global economic growth. Banks put under pressure in particular interruptions of supply chains, geopolitical tensions and weather -related extreme events. Central banks react with adaptations of interest policy; The first interest reductions can be expected in the euro area. These developments also affect the margins of the banks because the costs for deposits remain high.

challenges in the banking sector

The challenges for banks are complex. A moderate credit growth is to be expected, since high credit costs and restrictive contractual standards make lending. At the same time, banks have to prioritize interest -independent yields in order to compensate for minor revenue in the interest business. According to Deloitte, high investments in technology are necessary, but this leads to pressure on the cost discipline. In addition, a decline in credit quality is predicted, which forces banks to form higher reserves for potential loan losses.

In retail banking, banks are faced with higher financing costs, lower credit growth and decreasing customer loyalty. The Consumer Payments segment takes on continuous shift to digital transactions, but banks are also offset by risks such as cyber attacks. Despite the global growth of total capital, a focus on personalized advice is necessary for WEATTH Management in order to meet the changing market conditions.

regulatory requirements and social changes

The regulatory requirements for banks also increase. The focus topic for 2024 will be the optimization of product design and risk management, especially with regard to liquidity risks and potentially needy loans in the real estate sector. The EU taxonomy for sustainable investments is added to further environmental goals, which results in high demands on the conformity tests. The national delivery of delivery of delivery will be expanded to banks with more than 1,000 employees from the beginning of 2024.

In addition, the Digital Operational Resilience Act (Dora) from January 2025 for banks. These legal changes aim to strengthen the resilience of the banks in dealing with IT risks. The regulation of crypto-assets also becomes more strict, which means that banks have to validate and adapt their internal processes.