A4 für Copyshop GB.indd - Bayerische Landesbank

38 BayernLB – our company
} Cooperation
agreement with
the Spanish savings
banks
banks in order to reinforce collaboration. As with other agreements, the aim of the
agreement with the Spanish savings bank association CECA (Confederación Española
de Cajas de Ahorro) is to expand the market for the Bank’s own financing products by
exploiting its partners’ placement and sales facilities. Commercial products that had
previously been little used internationally, even within the EU, (e.g. direct debiting
systems) are to be made accessible to the institutions’ customers by means of system
networking. Furthermore, the agreement aims to assist customers of the savings
banks and of BayernLB in their business activities in the relevant partner country by
creating contacts there with trading partners, authorities, development institutions
and advisors.
Links with correspondent banks were further exploited to support primarily the savings
banks’ SME customers in setting up business relationships with international partners.
In addition, the EuropaService of the Sparkassen-Finanzgruppe Bayern (EIC), coordi-
nated by the Bank, ensures that customer wishes are entered into the electronic net-
work of the European Commission, the Business Cooperation Database.
Sovereigns business / support programmes
In 2004, the German public sector deficit again exceeded the previous year’s figure,
reaching approx. EUR 80 billion. This was primarily due to the still sluggish economy.
Financing instruments, also at länder level, were increasingly shifted from schuld-
schein notes to securities in order to expand the international investor base.
BayernLB used its expertise as a lead player in the placement of securities issues for
various different länder bonds. In government credit business, the Bank acted in a
conservative manner due to the difficult market environment, particularly noticeable
in the second half of 2004. For this reason, the volume of new business was halved in
comparison with the previous year.
Demand for loans from municipal institutions outside Bavaria remained at a high level
in spite of the investor restraint displayed by the central, regional and local authorities.
This particularly affected the need for cash advances. Customers continued to take
advantage of interest rates staying low to lock into interest rates long-term and to take
early interest rate hedging measures. The Bank maintained the previous year’s high
volume of new business and renewals.
Abroad, and particularly in New York, the Bank reinforced its strong market position
in the area of business with central, regional and local authorities. Due to enhanced
funding opportunities through public-sector covered bonds (pfandbriefe), there were
staff increases in this sector at branch level .