//Facts and Figures

In August 2002, Westdeutsche Landesbank Girozentrale was split up into West LB AG, which continues the activities of a competition-exposed bank, and Landesbank NRW, which is responsible for economic and structural development under a public mission. This split-up was effected against the background of an agreement, the so-called "Verständigung I", reached between the EU Commission and the Federal Government on July 17, 2001, under which Germany’s public banks ceased to benefit from institutional liability and guarantor liability in mid-July 2005.

"Verständigung II", reached between the EU Commission and the Federal Government on March 1, 2002, has created the framework for legally independent development banks which perform economic and structural development tasks under a public mission.

On this basis, the "Reorganisation Act", which came into effect on March 31, 2004, has laid the legal foundation for the new NRW.BANK, which will continue to benefit from institutional liability and guarantor liability and, hence, from a good rating and favourable funding possibilities.

The Reorganisation Act also provides for the owners to grant an explicit guarantee. As a consequence of this legally imposed joint and several liability, issues by NRW.BANK will have a solvency weighting of "zero". This means that banks no longer have to back these claims with liable capital. NRW.BANK will pass the resulting funding advantages on to the recipients of development funds in North Rhine-Westphalia.

NRW.BANK is owned by the State of North Rhine-Westphalia.

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Here you can find the current key figures of NRW.BANK.

Older key figures you find in our financial reports.

In the context of its mission, NRW.BANK may also provide finance for central, regional and local authorities and special-purpose associations under public law and participate in projects financed by the European Investment Bank or similar projects in the interest of the community.

In addition to the treasury business, NRW.BANK may, to the extent this is related to its tasks, also manage risks, raise subordinate guarantee capital and issue uncovered bearer bonds, profit participation rights, public-sector Pfandbriefe and other bonds.

The so-called "Verständigung I" reached between the EU Commission and the Federal Government on July 17, 2001 provides for the legal status of the public-law banks to remain unchanged. Under this agreement, the state guarantees - institutional liability and guarantor liability - were to be abolished after a transitional phase ending on July 18, 2005. The liabilities were then to be modified in a way which would make them similar to the relationship between a private shareholder and a private-law company.

In a subsequent agreement, the so-called "Verständigung II", dated March 1, 2002, the European Commission and the Federal Government defined special regulations for legally independent development banks engaging in the competition-neutral infrastructure and development business. Under this agreement, institutional liability and guarantor liability will continue to apply to this type of bank, which means that they continue to benefit from excellent funding conditions.

These advantages may be used exclusively for economic and structural development tasks. These tasks must be defined in a law by March 31, 2004.

To fulfil these formal requirements for qualification as a "Verständigung II Bank", the North Rhine-Westphalian Parliament adopted the "Act on the Reorganisation of Landesbank Nordrhein-Westfalen into the Development Bank of the State of North Rhine-Westphalia" ("Reorganisation Act") in March 2004 in a broad political consensus, giving NRW.BANK the official status of a development bank that will continue to benefit from institutional liability and guarantor liability.

Institutional liability is the obligation of the public-law guarantor to secure the financial basis of a bank, to keep it functional and cover any potential financial gaps. Insolvency is virtually impossible. Institutional liability is limited neither in terms of the amount nor in terms of time. It is regarded as a general principle of law.

Guarantor liability is a direct obligation, which is based on a law or ordinance, of a public-law institution (state, municipality, other corporation under public law) towards creditors of a public-law bank for all liabilities of that bank. It obliges the guarantor to step in in case of insolvency or liquidation of the bank. It is not a general principle of law and requires an express legal basis.

According to Section 4 (3) of the Reorganisation Act, NRW.BANK benefits from an explicit funding guarantee, on the basis of which issues by NRW.BANK have a solvency weighting of "zero". This means that banks who are creditors of NRW.BANK are no longer required to back their claims on NRW.BANK with liable capital. NRW.BANK will pass the resulting funding advantages on to the recipients of development funds in North Rhine-Westphalia.

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