Bankhaus RSA receives significantly higher guarantees from the BVR support fund

The Upper Bavarian credit institution needs significantly more support from the BVR protection scheme than previously known. The portfolio of non-performing loans is particularly large.

Frankfurt. The RSA bank has received significantly higher guarantees from support funds from the industry association BVR than previously known. In total, the BVR protection scheme (SE) granted almost 447 million euros in guarantees at the end of May, as can be seen from the 2025 annual financial statements, which were published in the company register on Friday.

In addition, the financial institution received a revenue subsidy of almost three million euros. The bank had previously reported BVR aid at around 115 million euros. However, she had already mentioned the enormous amount of 446 million euros in non-performing loans.

The industry service “Finanzbusiness” first reported on the high guaranteed amount. Since the beginning of 2024, the BVR protection scheme has supported or is about to support ten banks with guarantees, grants and capital.

Including the guarantees for the RSA bank, the aid provided amounts to almost 2.5 billion euros. In the event of an emergency, the security facility (SE) covers the entire bank and thus all customer deposits.

Several rescued Volksbanks had pushed forward real estate financing and other projects during the low interest rate phase in the 2010s and in some cases even later, which are now having a negative impact. Loans for commercial real estate are also in default at the RSA bank. Loans are declared “non-performing” if creditors are at least 90 days in arrears with repayment or if the bank considers repayment to be unlikely.

The RSA bank explained that part of the loans classified as non-performing were covered by collateral. “The remaining uncovered part, the so-called blank part, is around 115 million euros.” However, the BVR support fund secures the entire portfolio of non-performing loans. Otherwise the bank would have fallen short of the regulatory capital ratio.

And drastically: "Without the help of BVR-SE, the total capital ratio would be 2.03 percent. This means that the regulatory minimum capital requirements of 11.25 percent could not be met," it says in the annual financial statements. The total capital ratio is an important indicator of how well a bank can secure its risk-weighted assets, such as loans, with equity capital.

The BVR guarantee of almost 450 million euros is enormous considering the size of the RSA bank. It recently had total assets of just 1.2 billion euros. Raiffeisenbank in Hochtaunus received a similarly high amount of support last year. It is twice as big as the RSA bank.

Volksbank Braunschweig Wolfsburg (Brawo) needs help, guarantees and capital of up to 720 million euros from the BVR protection scheme. It is the highest support amount in the series of bank rescues since the beginning of 2024. Brawo is also significantly larger with total assets of 6.5 billion euros.

The RSA bank is to merge with the much larger VR Bank from Rosenheim. Most financial institutions supported by the BVR protection scheme merge with neighboring banks, which are generally much larger.