Cooperative Banks See 2.4% Growth in 2024 and Prepare for Summer Crypto Trading
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Cooperative banks also experience pressure
Vereinbanken (VR) banks, Germany's cooperative banks, expanded their lending portfolio last year, with an anticipated 2.4% increase to €800 billion in 2024, according to the German Association of Public Banks and Raiffeisen Banks (BVR). Amid a sluggish German economy, this growth is nothing short of impressive, emphasized BVR President Marija Kolak.
Business loans outpaced consumer loans, growing by 3.1% to €427 billion, compared to consumer loans' 1.7% increase to €369 billion. Private mortgage lending also saw positive growth, with a 2% leap to €332 billion. The resurgence in new business suggests a revival in the residential real estate market, as reported by BVR. Despite optimistic growth indicators, the current year's forecast remains uncertain, with an expected overall growth of 2-3%, driven by investments and real estate loans.
Government collaboration is crucial for tackling the economy's challenges, according to Kolak. "Policy makers need to cooperate closely with businesses and banks if we're to overcome Germany's challenges," she said.
As for the digital landscape, consolidation was the order of the day in 2024. The number of independent VR banks dropped by 3.6% to 672 institutions. One of the significant developments that these institutions are gearing up for is offering crypto trading to their retail customers, starting from summer 2025, as hinted by Markus Baerenfaenger, head of the relevant department at DZ Bank.
Despite the anticipated crypto trading services, it's essential to note that..
Current regulatory developments and available information suggest no explicit timeline for retail crypto trading. However, key developments – such as Germany's Finanzmarktdigitalisierungsgesetz (2024), BaFin's draft circular (06/25), the coalition government's focus on protecting smaller institutions, and the German Banking Industry Committee's crypto-related initiatives – hint at progress toward broader crypto accessibility.
Cooperative banks seem focused on complying with upcoming regulations, like MiCAR, DORA, and the digital euro, rather than enthusiastically promoting retail crypto trading services. Key factors that may facilitate retail access include:
- Partnerships with established cryptocurrency custodians.
- Clearer regulatory guidelines on consumer protection and compliance.
- Market demand that justifies the operational risks involved.
At present, no cooperative bank has announced specific plans for retail cryptocurrency trading. Implementation timelines will depend on the final adoption of regulatory frameworks and subsequent bank operational planning. Stay tuned for more developments in this space!
- Raiffeisen banks, part of the Vereinbanken (VR) cooperative banks, plan to offer crypto trading to their retail customers starting from summer 2025.
- Despite the preparedness to offer crypto trading, the growth in retail crypto trading services among cooperative banks may be influenced by partnerships with established cryptocurrency custodians, clearer regulatory guidelines on consumer protection and compliance, and market demand that justifies the operational risks involved.
- The expected growth of 2.4% in lending portfolio for cooperative banks in 2024 to €800 billion, according to the BVR, seems to impact their readiness to venture into retail crypto trading.
- While no explicit timeline for retail crypto trading has been set due to ongoing regulatory developments, key factors such as Germany's Finanzmarktdigitalisierungsgesetz (2024), BaFin's draft circular (06/25), the coalition government's focus on protecting smaller institutions, and the German Banking Industry Committee's crypto-related initiatives may drive progress toward broader crypto accessibility.
