It’s time to think

The mood at the just ended Eltec was good and optimistic.

Craft and industry are not complaining, on the contrary. The jug seems to have passed the electrical trade once again. The current order situation in the electrical trade is good. And thanks to the federal government’s economic stimulus package, electrical tradesmen can maintain their optimism beyond 2009,” says business consultant Ulrich C. Heckner.

At the moment, everyone is relying on politicians to somehow master the crisis. Actually, we have no choice but to hope and carry on as before. There’s not much you can do about it. Or is it? At the latest, now is the time to think about whether you are at the right bank – one that has avoided the risks of the financial markets in the past, says Heckner.

We only really became aware of the financial crisis when the German government issued a guarantee in autumn last year that it would provide unlimited protection for private savings deposits. Weren’t they already that way anyway because of the two security systems? That is, through the statutory deposit guarantee scheme (EdW) under the Deposit Guarantee and Investor Compensation Act (EAEG) on the one hand and the voluntary guarantee funds of the private banks on the other?

Dr. Johannes Fiala, a Munich lawyer and banker, says that security devices are an indication of insecurity. Also Finanztest writes in issue 1/2009 that there is 100% security in money matters just as little as in other things of life. The question must be allowed whether the voluntary safety funds are really as safe as we are led to believe.

In some circumstances, it can take several years to see your money from this pot again, not to mention all the hassle, Dr Fiala advises.

What makes many experts wonder is that this pledge by the federal government has still not been legislated. Politicians are unlikely to let a big bank go bust , Dr. Fiala reassures. Nevertheless, I think mismanagement and scandals are a reason to change banks. Customer beware. Above all, never put all your eggs in one basket, says Dr. Fiala.

He is not the only one who thinks that a medium-sized company is best off with a cooperative bank or a savings bank that has not run into difficulties. That tells me also my feeling and is confirmed to me also from other side. Whether a cooperative bank works seriously, you can recognize, among other things, the promised return on the deposit, said Dr. Fiala. 20% indicate unserious business conduct. Anything around 5% is okay.By the way, the extent to which the bank credit crunch is affecting lending is another issue. I would be interested to know if your business is still receiving credit or even if the credit line has been cut. Email me, anonymously if you like.

by Christiane Decker

(The electrical and building technician 04.2009, 3)
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About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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