In the worst case scenario applied by the stress test, the solvency ratio would stay above 15 percent, Schreiner added.

Moreover, the bank’s equity, including reserves, share capital and retained earnings amounts to around 300 million euros.

The lender received a new financing line in September last year of 140 million euros and is currently excessively liquid, especially as mortgage loan demand, the bank's main product, is much reduced.

Volksbank received an average of 2,000 applications a month last year for mortgage loans, but now it reports just 5 – 10 requests, due to consumer reticence in the harsh economic background.

The lender asks for a minimum down payment of 35 percent of the mortgage loan.

Volksbank reported a gross profit of 18.4 million euros in the first quarter of the year according to the International Financial Reporting Standards (IFRS), a surge from the 7 million euros in the similar period last year.