Handelsblatt Exclusive

Another Bank Bailout

NordLB non-exec chair Peter-Juergen Schneider also supersvisory board member at Bremer Landesbank source Julian Stratenschulte dpa 61630375
Peter-Jürgen Schneider is willing to help Bremer Landesbank.
  • Why it matters

    Why it matters

    Some German state-owned banks are still feeling the aftermath of the financial crisis and economic downturn in 2008. It may prompt them to raise capital.

  • Facts

    Facts

    • The ongoing slump in the shipping industry, along with excess capacity, has created a difficult environment for banks with large ship loan portfolios.
    • Partially state-owned banks such as Bremer Landesbank, NordLB and HSH Nordbank have been hit by writedowns on loans provided to the shipping companies.
    • The city-state of Bremen, which owns a 41 percent stake in BLB, is financially ailing and in position to inject cash into the bank.
  • Audio

    Audio

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NordLB is looking to bring its long-struggling Bremen subsidiary back from the brink. The state-backed bank owns 54.8 percent of Bremer Landesbank, which needs hundreds of millions of euros in fresh capital to survive.

Bremer Landesbank and NordLB, two regional banks partially owned by German states home to the country’s main ports Bremen and Hamburg, have suffered from a downturn in the global shipping industry, one of the banks’ main clients.

Faced with overcapacity since the financial crisis of 2008, shipping companies have seen revenue drop and some were unable to service their loans, triggering losses at the banks.

To manage fresh charges on shipping loans, which could total €700 million, or $786 million, NordLB’s non-executive supervisory board chief, Peter-Jürgen Schneider, told Handelsblatt his institution would be willing to take over Bremer Landesbank entirely.

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