A4 für Copyshop GB.indd - Bayerische Landesbank

Subsidised loan programmes were again issued with the aim of developing the Bavar-
ian economy, using the Free State of Bavaria’s share of the Bank’s profits and the State’s
budget. The majority of the subsidised development funds was used for municipal
water and sewage measures; just under a third was used for the purchase of existing
housing stock and student residences. The Bank also distributed subsidies for public-
sector development measures under the agricultural investment development pro-
gramme, and allocated interest subsidies in the context of the agricultural credit pro-
gramme.
Institutional customers
BayernLB is one of the core banks for leading institutional investors. Insurers and foun-
dations are among the Bank’s major investors. In addition to traditional fixed interest
products, structured products enjoyed increased favour due to the fact that interest
rates remained low on the capital markets. However, credit business with this customer
group was also extended considerably in the period under review, particularly through
the further expansion of letter-of-credit business.
Outlook
This business area is well equipped to deal with the challenges arising from the with-
drawal of the Gewährträgerhaftung (guarantee obligation). In credit business with
financial institutions, the Bank remains in a strong competitive position thanks to its
wide variety of funding options. The leading global position gained in recent years
in syndicated underwriting business with these customers is to be further reinforced.
New competitors will enter the market for business with central, regional and local
authorities due to the planned legislation to extend the scope of covered bond (pfand-
brief) funding. It will therefore require particular effort to expand this segment further.
BayernLB – our company
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