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.