Volksbank Bad Salzungen Schmalkalden is receiving support from the security fund of the German cooperative banks. The deposits of its customers and cooperative shares are therefore safe, said the administrator Christian Gervais.
The small bank is threatened with losses of 250 million euros, far more than it has equity capital. The imbalance had also caused interest outside of Thuringia because it is popularly known as the “Effenberg Bank’s” bankruptcy has been averted.