N-Bank is being strengthened into a real development bank

N-Bank is being strengthened into a real development bank

N-Bank strives to develop into a “real development bank”. According to Secretary of State for Economic Affairs Frank Doods, Chairman of the Board of Directors of N-Bank, this further development has already been decided and it is now a matter of defining the exact path for it. An agreement between the economics and finance ministries is in the final phase to strengthen the N-Bank. This process takes time, as strict checks by banking supervision are necessary and the organization of the N-Bank is also scrutinized.

A central component of strengthening the N-Bank is the possible transfer of the state's housing funding assets amounting to around 900 million euros. This transfer depends on how much N-Bank wants to expand its lending activities. Alternatively, the state could transfer money directly from the state budget to the N-Bank or transfer the state's shareholdings in companies to the bank.

The transfer of the housing development assets to the N-Bank involves some risks, as the bank would have to be liable for the assets in the event of possible difficulties. The CDU goes even further and demands that all of the country's funding programs be processed through the N-Bank in order to pool expertise. Last year, N-Bank already provided loans worth 771 million euros, including for social housing. The additional provision of 250 million euros for N-Bank equity made this possible.

It is clear that strengthening N-Bank with the transfer of housing development assets to the bank and the expansion of its activities is a complex process that must take various interests and risks into account.