The ProCredit Bank Deutschland is a bank based in

Frankfurt Frankfurt, officially Frankfurt am Main (; Hessian: , " Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on it ...

am Main. It is the youngest bank of the

ProCredit Holding The ProCredit Holding is the parent company of a development-oriented group of commercial banks for small and medium enterprises (SMEs), which operate in Southeastern Europe, Eastern Europe, Ecuador, and Germany. The business model of the group is ...

, which operates primarily in

Southeastern The points of the compass are a set of horizontal, radially arrayed compass directions (or azimuths) used in navigation and cartography. A compass rose is primarily composed of four cardinal directions—north, east, south, and west—each sep ...

and

Eastern Europe Eastern Europe is a subregion of the European continent. As a largely ambiguous term, it has a wide range of geopolitical, geographical, ethnic, cultural, and socio-economic connotations. The vast majority of the region is covered by Russia, whi ...

as well as in

South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sou ...

and wants to make a contribution to sustainable economic development through responsible

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

ing business. The admission of the customer business in

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwee ...

took place in March 2013.

Business model

The ProCredit Bank in Germany provides financial services for the ProCredit Banks worldwide and at the same time offers private and corporate customers in Germany a platform for engagement in Southeastern and Eastern Europe as well as South America. The bank specializes in small and medium-sized enterprises. The ProCredit Bank finances

renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...

projects and has an exclusion list for activities that are not funded. It also takes into account environmental risks when lending. Within the ProCredit Holding, the ProCredit Bank in Germany is also a service bank for the other ProCredit Banks. It supports the

liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liq ...

management and financing of the ProCredit Holding Banks. The ProCredit Bank is subject to German statutory

deposit insurance Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of ...

. In addition, it is affiliated to the Deposit Guarantee Fund of the '' Bundesverband deutscher Banken''. This increases the security limit to € 9,950,000 per customer.

Ownership

The shares of the bank are held in full by the Frankfurt-based ProCredit Holding. This is a public-private partnership and the

parent company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

of the ProCredit banks. The most important owners of the ProCredit Holding are ''Zeitinger Invest GmbH'' together with ''ProCredit Staff Invest GmbH & Co KG''. Other important shareholders are the German state development bank ''Kreditanstalt für Wiederaufbau'' (

KfW The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe ("banking group"), is a German state-owned investment and development bank, based in Frankfurt. As of 2014, it is the world's largest national d ...

) and the

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of ...

(IFC, a member of the

World Bank Group The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Gr ...

) as well as the Dutch

DOEN Foundation The DOEN Foundation (in Dutch language, Dutch ''Stichting DOEN'', from Dutch ''doen'' = to do, to act, take action) is a Dutch foundation (nonprofit), foundation supporting initiatives in the field of culture and cohesion (social policy), cohes ...

. In addition, various long-term and development-oriented investment companies are shareholders in the holding.

Banking supervision

Since the issuing of the banking license for the ProCredit Bank in Germany, the ProCredit Holding banks worldwide is under the consolidated supervision of the

Federal Financial Supervisory Authority The Federal Financial Supervisory Authority (german: Bundesanstalt für Finanzdienstleistungsaufsicht, Bundesanstalt für Finanzdienstleistungsaufsicht) better known by its abbreviation BaFin is the financial regulatory authority for Germany. It ...

(Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the ''

Deutsche Bundesbank The Deutsche Bundesbank (), literally "German Federal Bank", is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most ...

''. Holding-wide risk management and standardized reporting for all countries were set up in accordance with German regulatory requirements.

References

External links

Official Website ProCredit Bank

Official Website ProCredit Holding
{{Coordinate, article=/, NS=50.121166, EW=8.644731, type=landmark, region=DE-HE Banks based in Frankfurt Corporate finance 2012 establishments in Germany