Deutsche Hypothekenbank (Actien-Gesellschaft): the representatives of the holders (Träger) of its parent company NORD/LB welcome the solution proposed by the DSGV to cover capital requirements
Deutsche Hypothekenbank (Actien-Gesellschaft) is a wholly-owned subsidiary of Norddeutsche Landesank – Girozentrale (“NORD/LB”) and is closely linked to its parent company by a control and profit and loss transfer agreement and a waiver rule in accordance with Art. 7 (1) CRR, formerly Section 2a (1) of the German Banking Act (KWG). On 31 January 2019 NORD/LB published the following ad hoc announcement concerning a proposed solution to cover its capital requirements:
„The German Savings Banks and Giro Association (Sparkassen- und Giroverband e.V.) (“DSGV”) declared today, that the responsible bodies of the Savings Banks Finance Group (Sparkassen-Finanzgruppe) had agreed at a general meeting unanimously on a proposed solution to cover the capital requirements and the associated reorganisation of Norddeutsche Landesbank – Girozentrale – (“NORD/LB”).
The representatives of the holders (Träger) of NORD/LB declared at their meeting on 31 January 2019, that they welcome the DSGV’s proposal for a solution to strengthen the capital and the realignment of the bank and expressed their support to prioritise this proposal.
Following coordination with the relevant supervisory authorities, the bank’s responsible bodies, in particular the holders meeting (Trägerversammlung), will decide on the next steps in a timely manner.
Subsequently, the concrete details of the measures for the capital strengthening and realignment are to be determined as well as further coordination with the EU Commission and the relevant supervisory authorities is necessary.“