History of the Landesbank (Bavaria)

In Germany, Landesbanken are credit institutions that carry out banking transactions for individual federal states and support the state in promoting the economy.

The history of the legal predecessors of today’s Landesbanken often dates back to the 18th century. In their now familiar form, the banks emerged in the years after World War II, when the German states issued their first state bonds with the help of the Landesbanken. In the respective federal state for which they carry out banking transactions and act in an advisory capacity, they perform a kind of house bank function. In addition, the Landesbanken are authorized to conduct all banking transactions permitted under their statutes. In this respect, they have been operating on the market for years as general commercial or universal banks.

The business model of the Landesbanken has faced a dilemma since the abolition of institutional burden and guarantor liability in 2005; on the one hand, they conduct banking business for their federal state, but on the other hand, they are on a par with private banks and have to hold their own …

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Understanding German Mortgages.

Mortgage lenders in Germany allow you to borrow up to 100% of the property value (although you will have to cover some other costs of buying a house, such as purchase fees, with your own equity). While some German banks will be willing to finance the full amount, loans of around 80% are more common.

A major German community-oriented bank that wants to bring its model to Ireland believes it could play a role in solving the housing crisis. Sparkasse, the biggest bank in Germany, wants to create an alternative to the major commercial banks, particularly in regional towns.

The European Investment Bank has indicated support for the €200m project, said Sparkasse. That support is conditional on the proposal receiving political backing in Ireland. So far, this has been slow to materialize.

Sparkasse, which issues half of all German mortgages at rates well below standard Irish rates, believes Ireland is ideal for its municipality-owned, non-profit model.

The 200-year-old bank is aimed squarely at SMEs and the middle segment of the market. In Germany, where it has 300,000 staff in hundreds …

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Who provides mortgages in Germany and who are the largest providers?

The provider of mortgages in Germany is always a banks. You usually use your bank where you already have your account because they can make you a better offer with better conditions. But there are also websites where you can compare different providers.

In order to clarify this question, the “Who is Who” of the real estate financiers in Frankfurt is gathered once a year. Max Herbst, owner of the FMH financial consulting and grand seigneury of the German bankers, lends the FMH Award. For the past 25 years, Herbst has been analysing the conditions for real estate loans and has regularly selected the best suppliers of the year for four years.

A total of 14 members of the Board of Directors and eight directors and department heads had been present, including Wolfgang Müller, the board of BBBank, Michiel Goris, CEO of Interhyp, or Dieter Pfeiffenberger, CEO of BHW Bausparkasse. An award will be awarded to those who, with their Baufi offer in the 50 weeks of last year, had the highest average value of their category. For comparison, Herbst …

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