Headquarters of NRW.Bank in Düsseldorf
Headquarters of NRW.Bank in Münster
NRW.Bank Düsseldorf, view from the Reichsstraße

NRW.Bank (incorporated as NRW.BANK) is the promotional bank of the German state of North Rhine-Westphalia (NRW) based in Düsseldorf and Münster.[4] It's an institution under public law. It is owned by the North Rhine-Westphalia state[5] and supports its structural policy.

Activities

NRW.Bank is the promotional bank for North Rhine-Westphalia, with a public mandate to support the state and its municipal authorities in fulfilling their responsibilities, particularly in the areas of structural, economic, social, and housing policy.[6]

NRW.Bank primarily employs instruments such as promotional loans with favourable terms or long-term interest rate commitments, the provision of equity and mezzanine capital,[7] risk-sharing with commercial banks, and advisory services.[8] Beyond traditional banking activities, NRW.Bank also acts as a service provider for the state in the administration of grant funding.[9][10] It operates on a market-neutral basis.[11]

The bank provides most promotional loans through the Hausbankenverfahren (on-lending system) in partnership with banks and savings banks. Applicants apply via their house bank, which assesses creditworthiness, forwards the application, and disburses funds under favourable conditions, sometimes sharing the risk with the promotional bank.[12][13]

NRW.Bank operates independently of the state budget, financing its promotional activities from its own revenues rather than from state funds.[14]

Economy

In the field of economic development, NRW.Bank safeguards and strengthens the SME sector.[15][16] It also provides support for business start-ups. Its programmes are aimed at small and medium-sized enterprises (SMEs), start-ups, scale-ups,[8][17] self-employed individuals, and entrepreneurs, offering low-interest promotional loans for working capital and investments. These are complemented by mezzanine[7] and equity financing for small and medium-sized businesses.[18][19]

In particular, the bank supports transformation processes in areas such as digitalisation,[20] sustainability, resource efficiency,[21] and electric mobility.[22] In addition to promotional loans and equity products, it also provides advice on public funding opportunities from other providers, including the state, federal government, and the EU.[8][23][24]

Housing

NRW.Bank promotes housing and living environments in North Rhine-Westphalia. Its activities include supporting new residential construction, the modernisation of existing properties, and measures to enhance energy efficiency and achieve environmental and climate protection goals in residential real estate.[25][26][27]

NRW.Bank complements the state's public housing promotion with its own promotional programmes aimed at private individuals looking to acquire, build, or modernise residential property.[28]

Infrastructure and municipalities

NRW.Bank supports municipalities and municipal enterprises in North Rhine-Westphalia with low-interest, long-term loans and advisory services for implementing local infrastructure projects. These loans, granted directly, cover all areas of municipal infrastructure, with investments in areas such as climate protection and education benefiting from further reduced interest rates.[29][30]

Refinancing

NRW.Bank refinances itself through the international capital market. In 2013, it became the first regional promotional bank in Germany to issue a Green Bond to refinance environmentally friendly projects in North Rhine-Westphalia. Since then, NRW.Bank has issued green bonds annually.[31][32] In 2020, it also became the first German promotional bank to place a social bond with a volume of €1 billion.[33][34]

Governing bodies

According to Section 7 (1) of its statutes, the governing bodies of the bank are the managing board, the supervisory board, and the board of guarantors. While the managing board manages the bank, the supervisory board monitors its activities. The board of guarantors fulfils corporate governance functions similar to those of a general meeting in a public limited company.[6]

History

Background

The history of NRW.Bank began in 2001 with the Verständigung I agreement, in which the EU Commission and the German government decided to phase out state liability guarantees for German Landesbanken and savings banks by 2005 for competition law reasons, while preserving their public-law status. A subsequent agreement, Verständigung II, signed on 1 March 2002, introduced special regulations for legally independent promotional banks engaged in market-neutral promotional and structural development activities.[35]

As a result, Westdeutsche Landesbank Girozentrale was split into the privately operated WestLB AG and the publicly owned Landesbank NRW, the predecessor of what later became NRW.Bank.[36]

Creation of NRW.Bank and expansion of promotional programmes

On 31 March 2004, the North Rhine-Westphalian state parliament passed the law restructuring Landesbank NRW into the development bank for North Rhine-Westphalia. This officially granted the bank promotional bank status, ensuring the continued application of institutional liability and guarantor liability. The bank was also renamed NRW.Bank, under which it has operated ever since.[37] Its headquarters have since been located in Münster and Düsseldorf.[38]

From 2005, NRW.Bank expanded its products, developing additional promotional programmes for start-ups, SMEs, and municipalities.[39] Following Cyclone Kyrill in 2007, it introduced emergency loans for the first time.[40][41] In response to the financial crisis, the bank launched a telephone information service to help businesses select suitable promotional offerings.[42] In autumn 2009, NRW.Bank moved into a new building in Münster.[43]

In January 2010, the Housing Promotion Agency of North Rhine-Westphalia (Wohnungsbauförderungsanstalt Nordrhein-Westfalen, Wfa) was integrated into NRW.Bank as its housing promotion division. The bank assumed all tasks and responsibilities of the Wfa, inheriting its rights and obligations. The Wfa's assets remained with NRW.Bank and became part of its share capital.[44]

In 2015, NRW.Bank was included in a European Central Bank list of European institutions and national agencies whose bonds would be eligible for the ECB to buy alongside sovereign debt.[45]

On 1 January 2017, NRW.Bank, together with the state of North Rhine-Westphalia, launched the NRW.Bank.Gute Schule 2020 funding programme. Under this scheme, municipalities received €500 million annually over four years for school renovation, modernisation, and digitalisation projects. The state covered all repayment and interest costs, making the programme cost-free for municipalities.[46]

In 2019, NRW.Bank moved into an office location in the former WestLB headquarters in Düsseldorf. In 2024, construction work began on a new building at the site of the former Ministry of the Interior in Düsseldorf.[47][48]

Crisis aid and new developments

Since 2020, the bank has increasingly provided support measures for crisis situations. During the COVID-19 pandemic, it offered funding primarily for start-ups, businesses, and municipalities.[49][50][51] Following the 2021 European floods, NRW.Bank introduced promotional programmes to help with flood damage recovery.[52][53]

Controversy

In April 2015, NRW.Bank filed a lawsuit against Austrian "bad bank" Heta Asset Resolution AG for failing to pay €275.5 million in bonds following the suspension of its debt, imposed by Austrian financial regulators.[54] The North Rhine-Westphalia state government subsequently asked German finance minister Wolfgang Schäuble to intervene and "to do what is politically and legally possible so that contracts or commitments are met."[55]

NRW.Bank attracted criticism for its use of Credit Default Swaps (CDS). NRW.Bank's CDS mainly relate to states with very good to good ratings, however, the risk of devaluation and consequently increasing losses remains.[56][57] The North Rhine-Westphalia Constitutional Court ruled in 2011 that the North Rhine-Westphalia State Court of Audit may comprehensively audit the bank.[58]

See also

References

  1. ^ "Company Overview of NRW.BANK". Bloomberg Business. Retrieved 19 February 2019.
  2. ^ "Executive bodies of NRW.BANK". NRW.BANK. Retrieved 2024-08-12.
  3. ^ Kiehl, Annette (2024-03-18). "Plus in der Wohnraumförderung". Westfalenspiegel (in German). Retrieved 2025-03-03.
  4. ^ To be compared with US Community development bank
  5. ^ "Owner structure". NRW.BANK. Archived from the original on 2015-12-22. Retrieved 2015-12-16.
  6. ^ a b "Satzung der NRW.Bank vom 24. September 2015". Recht NRW (in German). Retrieved 2025-03-03.
  7. ^ a b Scheffer, Mareike (2013-04-12). "Wenn das Rückzahlen so einfach wäre". Bayerische Staatszeitung (in German). p. 14.
  8. ^ a b c "NRW-Bank tut mehr für Start-ups". Frankfurter Allgemeine Zeitung (in German). 2018-03-21. p. 18.
  9. ^ Faust, Pauline (2024-12-09). "NRW fördert Bürgerenergieprojekte". Zeitung für kommunale Wirtschaft (in German). Retrieved 2025-03-03.
  10. ^ "NRW-Eigentumsförderung 2024 mit guten Konditionen". Haus & Grund Rheinland (in German). 2024-03-06. Retrieved 2025-03-03.
  11. ^ Forytta, Tamina (2023-03-17). "Feuer- und Rettungswache: Fachausschuss macht den Weg frei". Ruhr Nachrichten (in German). p. 24.
  12. ^ "Was ist das Hausbankprinzip?". Fördermarkt (in German). 2017-10-26. Retrieved 2025-03-03.
  13. ^ "Rolle und Funktion der Hausbank bei Fördermitteln". Fördermittel Plus (in German). 2013-09-02. Retrieved 2025-03-03.
  14. ^ Resch, Renate (2019-09-24). "Qualitätssiegel für Brachelener Schule. Das ist die NRW Bank". Rheinische Post (in German). p. 18.
  15. ^ Klein, René. "Fördermittel NRW: NRW.Bank bietet Förderung für Gründer". Für Gründer (in German). Retrieved 2025-03-03.
  16. ^ "NRW.Bank Gründung und Wachstum". Förderdatenbank. (in German). Retrieved 2025-03-03.
  17. ^ "Up-Scaling Programm". NRW Bank (in German). Retrieved 2025-03-03.
  18. ^ "NRW-Bank baut Programm für Gründer weiter aus". Kölner Stadt-Anzeiger (in German). 2022-01-05.
  19. ^ Meßing, Frank (2022-05-16). "Häufig führt nur ein Marathon zum Erfolg". Westfalenpost (in German). p. 8.
  20. ^ Gebbink, Andreas (2021-07-21). "Unternehmen werden gesondert gefördert". Neue Ruhr Zeitung (in German). p. 9.
  21. ^ Lehmkuhl, Kurt (2023-07-25). "Förderungen machen Energieeffizienz in Betrieben bezahlbar". Rheinische Post (in German). p. 19.
  22. ^ Breitkopf, Thorsten (2019-03-20). "NRW-Bank will E-Mobilität stärker fördern". Kölner Stadt-Anzeiger (in German).
  23. ^ Stölting, Michael (2019-06-22). "Förderung ist mehr als nur monetäre Unterstützung". Börsen-Zeitung (in German).
  24. ^ Bangert, Ulrich (2017-05-25). "Velberter radeln für den Klimaschutz". Westdeutsche Zeitung (in German).
  25. ^ Friedrich, Anna (2024-11-09). "Mehr Fördergeld für Wohneigentum". Kölner Stadt-Anzeiger (in German).
  26. ^ "3,8 Milliarden Euro für Wohnungsbau". Kölner Stadt-Anzeiger (in German). 2024-03-03.
  27. ^ Möwius Nieukerk, Dirk (2021-06-21). "Darlehen für Umbau und Modernisierung". Rheinische Post (in German). p. 20.
  28. ^ "So unterstützt NRW Familien beim Bau oder Kauf von Häusern". Westfalenpost (in German). 2024-04-05. Retrieved 2025-03-03.
  29. ^ Ortmann, Philipp; Boscheck, Louisa (2024-09-26). "Straßenausbau wird kaum gefördert". Westdeutsche Allgemeine Zeitung (in German). p. 18.
  30. ^ "Infrastruktur". NRW Bank (in German). Retrieved 2025-03-03.
  31. ^ "Green Bond der NRW Bank refinanziert 48 Windparks". Energate (in German). 2017-09-08.
  32. ^ "NRW-Bank bringt Umweltanleihe an den Markt". Kölner Stadt-Anzeiger (in German). 2020-02-27.
  33. ^ List, Thomas (2023-08-08). "Geteilte Meinung zu Social Bonds". Börsen-Zeitung (in German). p. 4.
  34. ^ "Eine Milliarde Euro für sozial nachhaltige Projekte in Nordrhein-Westfalen". NRW Bank (in German). Retrieved 2025-03-03.
  35. ^ Dohmen, Caspar; Köhler, Peter (2005-08-31). "Unterstützung des Mittelstands. Privilegien fördern Förderbanken". Handelsblatt (in German).
  36. ^ Wilson, James (2011-09-26). "Finance industry: Demise of WestLB is a sign of changing times". Financial Times. Retrieved 2025-03-03.
  37. ^ Pott, Wolfgang (2004-05-28). "Förderung von Mittelstand und Großprojekten: Die NRW-Bank ist die drittgrößte Strukturbank Europas. Die große Unbekannte". Die Welt (in German).
  38. ^ Winters, Georg (2004-03-31). "NRW.Bank: Wir halten uns an die Spielregeln". Rheinische Post (in German).
  39. ^ Köhler, Peter (2006-12-27). "NRW-Bank fördert Gründer". Handelsblatt (in German). p. 26.
  40. ^ "Rund 63 Millionen Euro Sonderkredite nach Kyrill". Rheinische Post (in German). 2007-07-12.
  41. ^ Zacharias, Christoph (2007-03-13). "Kyrill fällte ganze Wälder". Rheinische Post (in German).
  42. ^ "Das gibt zu denken". Die Tageszeitung (in German). 2009-07-24. p. 14.
  43. ^ Beul, Miriam M. (2009-05-29). "Ein Hort der Stabilität". Handelsblatt (in German). p. 34.
  44. ^ "Gesetz zur Auflösung der Wohnungsbauförderungsanstalt Nordrhein-Westfalen (Wfa-Auflösungsgesetz)". Recht NRW (in German). Retrieved 2025-03-03.
  45. ^ "ECB will gradually lend back government bonds it buys". Reuters. 2015-03-05. Archived from the original on 2021-05-16. Retrieved 2025-03-03.
  46. ^ Resch, Renate (2019-09-24). "Qualitätssiegel für Brachelener Schule". Rheinische Post (in German). p. 18.
  47. ^ Bühren, Katja (2020-05-08). "Düsseldorf: Neubauten für NRW.Bank und Finanzministerium". Immobilien Zeitung (in German). Retrieved 2025-03-03.
  48. ^ Ingel, Marc (2024-10-28). "Die Carlstadt im neuen Angesicht". Westdeutsche Zeitung (in German). Retrieved 2025-03-03.
  49. ^ Schmalen, Lothar (2020-03-29). "Schnelle Kredite für Firmen in Corona-Krise". Neue Westfälische (in German). p. 7.
  50. ^ Kolle, Gabriele (2020-03-19). "Sonderkredite und Krisenfonds sollen Unternehmen retten". Ruhr Nachrichten (in German). p. 4.
  51. ^ Schmalen, Lothar (2020-04-22). "Neue Kredithilfen für Kommunen". Neue Westfälische (in German). p. 1.
  52. ^ "Mehr als 80 Millionen Fluthilfe". Westfalenpost (in German). 2024-11-18. p. 19.
  53. ^ "Land NRW sagt Bürgern schnelle Hilfe für Wiederaufbau". Die Welt (in German). 2021-08-27.
  54. ^ "Germany's NRW Bank sues over Austrian bad bank bonds". Reuters. 2015-04-14. Archived from the original on 2021-05-16. Retrieved 2025-03-03.
  55. ^ "German state asks Schaeuble to intervene in Heta case". Reuters. 2015-04-16. Archived from the original on 2023-06-25. Retrieved 2025-03-03.
  56. ^ (in German) "Diese CDS "referenzieren überwiegend auf Staaten und befinden sich nahezu ausschließlich im sehr guten und guten Investment Grade-Bereich. Mit einer Inanspruchnahme wird derzeit nicht gerechnet" in NRW.Bank, Financial report 2013, page 106
  57. ^ Bastian, Nicole; Landgraf, Robert; Osman, Yasmin; Menzel, Stefan (2012-02-13). "NRW-Bank groß im Geschäft mit Derivaten". Handelsblatt (in German).
  58. ^ (in German) VGH NRW, Urteil vom 13. Dezember 2011, Az: VGH 11/10
Allikas: Https://en.wikipedia.org/wiki/NRW.Bank
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