Risk provisioning at German state banks: Rene Benko's Signa commitment raises questions

Risk provisioning at German state banks: Rene Benko's Signa commitment raises questions

According to a report by finanzmarktwelt.de,

The financial crisis of Rene Benko's real estate empire has spread further. There were suggestions that German state banks were involved in the Signa Group. In the first half of the year, the large state banks made risk provisions for their real estate transactions amounting to around 400 million euros. The exact extent of the risk provision and the impact on the market are still unclear. However, the Signa Group's turbulence could also be felt by the German savings banks.

The Landesbanken have significant investments in the Signa Group. For example, the Signa commitment at Helaba amounts to a mid-three-digit million amount and at NordLB to a low three-digit million amount. These exposures could have a big impact on the market as the turmoil at Signa Group has led to a slump in European commercial real estate.

The effects of the Landesbanken's risk provisions show that Helaba accounts for the largest share. The commercial real estate loan book of Helaba, LBBW, BayernLB and NordLB was recently around 180 billion euros. The analysis of documents and discussions with representatives of the institutes paint a worrying picture.

The Landesbanken's loan volumes and risk provisions indicate potential risks that could arise from the commitments with the Signa Group. Refinancing risks are expected to increase due to rising interest rates and falling market valuations, which could result in significant losses for financial institutions.

This article illustrates the potential impact of the Landesbanken's involvement with the Signa Group and the risks that arise from it. The financial industry and the market as a whole could be significantly affected by the turbulence at Signa Group. It is important to keep an eye on developments and be prepared for possible changes in the financial industry.