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Volksbank Brawo Suspends CEO, Seeks Support From Cooperative Protection Scheme

The step points to a bank overhaul backed by the sector’s safety net after management flagged risks from loan write-downs.

Overview

  • The supervisory board removed CEO Jürgen Brinkmann with immediate effect over a dispute about the bank’s strategic direction.
  • Board member Lars Berkefeld becomes interim chief with support from Carsten Ueberschär, and the bank will hire an external third board member.
  • The bank says it will apply for coverage measures from the BVR protection scheme, a cooperative fund that provides support to stabilize member banks.
  • Berkefeld said Brawo meets capital and liquidity rules but sees risks from impairments, and he plans a critical review of the group’s business strategy.
  • The outcome of the application and any conditions are not yet known, and the bank says customers, members, and staff should see no immediate effect.