Countries
Ireland, Greece
Local Project Partner
Ireland: IRL (Irish Rural Link, a national rural community network)
German Partner
n.n.
Donor
Deutscher Sparkassen- und Giroverband (DSGV) (German Savings Banks Association)
Duration
01.01.2015 - 31.12.2021
The project handles inquiries on the establishment of Sparkassen-like systems in other EU countries. From the beginning, activities have focused on Greece and Ireland. In the wake of the euro crisis, many banks had to close branches here, leaving small and medium-sized enterprises with limited access to credit. The remaining banking sector, especially in Greece, suffers from high non-performing loans and persistently weak earnings.
The establishment of a decentralized banking system along the lines of the German Sparkassen met with great interest in Greece immediately after the launch of the first European rescue program in 2010. After concrete plans for implementation were not pursued in subsequent years due to changes in government and unresolved capitalization issues, the Greek government again formally requested support in early 2018. German Sparkassenstiftung has since contacted the newly formed government to restart the negotiation process.
In Ireland, too, the concept of a decentralized savings bank system, based on the German Sparkassen-model with its municipal ties is attracting great interest. From 2015 to 2019, German Sparkassenstiftung was cooperation with the Irish Rural Link (IRL) – an Irish association of communal initiatives. Following a consultation process, in July 2018 the "Report on Public Banking" was published jointly by the Department of Finance and the Department of Regional Development. The analysis comes to a positive assessment of the concept of decentralized credit institutions but leaves open the ways forward. Another study in late 2019 makes several recommendations to improve Ireland's banking system, but objects to state investment in new institutions.
The closure of the country's third-largest bank, announced in early 2021, has led to renewed public debate on the need for a decentralized public banking system.
Project Task
German Sparkassenstiftung's role is to provide conceptual groundwork, support the political decision-making process and act as an advisor during the establishment and development phase.
