NRW.Bank

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.{{Cite web |title=Satzung der NRW.Bank vom 24. September 2015 |url=https://recht.nrw.de/lmi/owa/br_vbl_detail_text?anw_nr=6&vd_id=15237&ver=8&val=15237&sg=0&menu=1&vd_back=N |access-date=2025-03-03 |website=Recht NRW |language=de}}

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,{{Cite news |last=Scheffer |first=Mareike |date=2013-04-12 |title=Wenn das Rückzahlen so einfach wäre |work=Bayerische Staatszeitung |pages=14 |language=de}} risk-sharing with commercial banks, and advisory services.{{Cite news |date=2018-03-21 |title=NRW-Bank tut mehr für Start-ups. |work=Frankfurter Allgemeine Zeitung |pages=18 |language=de}} Beyond traditional banking activities, NRW.Bank also acts as a service provider for the state in the administration of grant funding.{{Cite web |last=Faust |first=Pauline |date=2024-12-09 |title=NRW fördert Bürgerenergieprojekte |url=https://www.zfk.de/unternehmen/nachrichten/nrw-foerdert-buergerenergieprojekte |access-date=2025-03-03 |website=Zeitung für kommunale Wirtschaft |language=de-de}}{{Cite web |date=2024-03-06 |title=NRW-Eigentumsförderung 2024 mit guten Konditionen |url=https://www.hausundgrund-verband.de/aktuelles/einzelansicht/nrw-eigentumsfoerderung-2024-mit-guten-konditionen/ |access-date=2025-03-03 |website=Haus & Grund Rheinland |language=de-de}} It operates on a market-neutral basis.{{Cite news |last=Forytta |first=Tamina |date=2023-03-17 |title=Feuer- und Rettungswache: Fachausschuss macht den Weg frei |work=Ruhr Nachrichten |pages=24 |language=de}}

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.{{Cite web |date=2017-10-26 |title=Was ist das Hausbankprinzip? |url=https://www.foerdermarkt.de/index.php/know-how/39-hausbankprinzip |access-date=2025-03-03 |website=Fördermarkt |language=de}}{{Cite web |date=2013-09-02 |title=Rolle und Funktion der Hausbank bei Fördermitteln |url=https://www.foerdermittel-plus.de/foerdermittel/ratgeber/167-rolle-und-funktion-der-hausbank-bei-foerdermitteln |access-date=2025-03-03 |website=Fördermittel Plus |language=de}}

NRW.Bank operates independently of the state budget, financing its promotional activities from its own revenues rather than from state funds.{{Cite news |last=Resch |first=Renate |date=2019-09-24 |title=Qualitätssiegel für Brachelener Schule. Das ist die NRW Bank |work=Rheinische Post |pages=18 |language=de}}

In the field of economic development, NRW.Bank safeguards and strengthens the SME sector.{{Cite web |last=Klein |first=René |title=Fördermittel NRW: NRW.Bank bietet Förderung für Gründer |url=https://www.fuer-gruender.de/kapital/foerdermittel/foerderbank-im-profil/foerdermittel-nrw-bank/ |access-date=2025-03-03 |website=Für Gründer |language=de}}{{Cite web |last= |first= |title=NRW.Bank Gründung und Wachstum |url=https://www.foerderdatenbank.de/FDB/Content/DE/Foerderprogramm/Land/NRW/nrw-bank-gruendungskredit.html |access-date=2025-03-03 |website=Förderdatenbank. |language=de}} It also provides support for business start-ups. Its programmes are aimed at small and medium-sized enterprises (SMEs), start-ups, scale-ups,{{Cite web |title=Up-Scaling Programm |url=https://www.nrwbank.de/de/foerderung/foerderprodukte/60142/up-scaling-programm.html |access-date=2025-03-03 |website=NRW Bank |language=de}} self-employed individuals, and entrepreneurs, offering low-interest promotional loans for working capital and investments. These are complemented by mezzanine and equity financing for small and medium-sized businesses.{{Cite news |date=2022-01-05 |title=NRW-Bank baut Programm für Gründer weiter aus |work=Kölner Stadt-Anzeiger |language=de}}{{Cite news |last=Meßing |first=Frank |date=2022-05-16 |title=Häufig führt nur ein Marathon zum Erfolg |work=Westfalenpost |pages=8 |language=de}}

In particular, the bank supports transformation processes in areas such as digitalisation,{{Cite news |last=Gebbink |first=Andreas |date=2021-07-21 |title=Unternehmen werden gesondert gefördert |work=Neue Ruhr Zeitung |pages=9 |language=de}} sustainability, resource efficiency,{{Cite news |last=Lehmkuhl |first=Kurt |date=2023-07-25 |title=Förderungen machen Energieeffizienz in Betrieben bezahlbar |work=Rheinische Post |pages=19 |language=de}} and electric mobility.{{Cite news |last=Breitkopf |first=Thorsten |date=2019-03-20 |title=NRW-Bank will E-Mobilität stärker fördern |work=Kölner Stadt-Anzeiger |language=de}} 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.{{Cite news |last=Stölting |first=Michael |date=2019-06-22 |title=Förderung ist mehr als nur monetäre Unterstützung |work=Börsen-Zeitung |language=de}}{{Cite news |last=Bangert |first=Ulrich |date=2017-05-25 |title=Velberter radeln für den Klimaschutz |work=Westdeutsche Zeitung |language=de}}

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.{{Cite news |last=Friedrich |first=Anna |date=2024-11-09 |title=Mehr Fördergeld für Wohneigentum |work=Kölner Stadt-Anzeiger |language=de}}{{Cite news |date=2024-03-03 |title=3,8 Milliarden Euro für Wohnungsbau |work=Kölner Stadt-Anzeiger |language=de}}{{Cite news |last=Möwius Nieukerk |first=Dirk |date=2021-06-21 |title=Darlehen für Umbau und Modernisierung |work=Rheinische Post |pages=20 |language=de}}

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.{{Cite web |last= |first= |date=2024-04-05 |title=So unterstützt NRW Familien beim Bau oder Kauf von Häusern |url=https://www.wp.de/staedte/wittgenstein/article242016838/Guenstige-Kredite-NRW-Bank-unterstuetzt-Familien-beim-Hausbau.html |access-date=2025-03-03 |website=Westfalenpost |language=de}}

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.{{Cite news |last=Ortmann |first=Philipp |last2=Boscheck |first2=Louisa |date=2024-09-26 |title=Straßenausbau wird kaum gefördert |work=Westdeutsche Allgemeine Zeitung |pages=18 |language=de}}{{Cite web |title=Infrastruktur |url=https://www.nrwbank.de/de/foerderung/foerderprodukte/15197/nrwbank-infrastruktur.html |access-date=2025-03-03 |website=NRW Bank |language=de}}

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.{{Cite news |date=2017-09-08 |title=Green Bond der NRW Bank refinanziert 48 Windparks |work=Energate |language=de}}{{Cite news |date=2020-02-27 |title=NRW-Bank bringt Umweltanleihe an den Markt |work=Kölner Stadt-Anzeiger |language=de}} In 2020, it also became the first German promotional bank to place a social bond with a volume of €1 billion.{{Cite news |last=List |first=Thomas |date=2023-08-08 |title=Geteilte Meinung zu Social Bonds |work=Börsen-Zeitung |pages=4 |language=de}}{{Cite web |title=Eine Milliarde Euro für sozial nachhaltige Projekte in Nordrhein-Westfalen |url=https://www.nrwbank.de/de/info-und-service/presseinformationen/2024/social-bond.html |access-date=2025-03-03 |website=NRW Bank |language=de}}

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.

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.{{Cite news |last=Dohmen |first=Caspar |last2=Köhler |first2=Peter |date=2005-08-31 |title=Unterstützung des Mittelstands. Privilegien fördern Förderbanken |work=Handelsblatt |language=de}}

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.{{Cite web |last=Wilson |first=James |date=2011-09-26 |title=Finance industry: Demise of WestLB is a sign of changing times |url=https://www.ft.com/content/528ac8de-de1f-11e0-9fb7-00144feabdc0 |access-date=2025-03-03 |website=Financial Times |language=en-GB}}

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.{{Cite news |last=Pott |first=Wolfgang |date=2004-05-28 |title=Förderung von Mittelstand und Großprojekten: Die NRW-Bank ist die drittgrößte Strukturbank Europas. Die große Unbekannte. |work=Die Welt |language=de}} Its headquarters have since been located in Münster and Düsseldorf.{{Cite news |last=Winters |first=Georg |date=2004-03-31 |title=NRW.Bank: Wir halten uns an die Spielregeln |work=Rheinische Post |language=de}}

From 2005, NRW.Bank expanded its products, developing additional promotional programmes for start-ups, SMEs, and municipalities.{{Cite news |last=Köhler |first=Peter |date=2006-12-27 |title=NRW-Bank fördert Gründer |work=Handelsblatt |pages=26 |language=de}} Following Cyclone Kyrill in 2007, it introduced emergency loans for the first time.{{Cite news |date=2007-07-12 |title=Rund 63 Millionen Euro Sonderkredite nach Kyrill. |work=Rheinische Post |language=de}}{{Cite news |last=Zacharias |first=Christoph |date=2007-03-13 |title=Kyrill fällte ganze Wälder |work=Rheinische Post |language=de}} In response to the 2008 financial crisis, the bank launched a telephone information service to help businesses select suitable promotional offerings.{{Cite news |date=2009-07-24 |title=Das gibt zu denken |work=Die Tageszeitung |pages=14 |language=de}} In autumn 2009, NRW.Bank moved into a new building in Münster.{{Cite news |last=Beul |first=Miriam M. |date=2009-05-29 |title=Ein Hort der Stabilität |work=Handelsblatt |pages=34 |language=de}}

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.{{Cite web |title=Gesetz zur Auflösung der Wohnungsbauförderungsanstalt Nordrhein-Westfalen (Wfa-Auflösungsgesetz) |url=https://recht.nrw.de/lmi/owa/br_bes_text?anw_nr=2&gld_nr=2&ugl_nr=237&bes_id=13286&aufgehoben=N&menu=1&sg=0 |access-date=2025-03-03 |website=Recht NRW |language=de}}

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.{{Cite news |last= |first= |date=2015-03-05 |title=ECB will gradually lend back government bonds it buys |url=https://www.reuters.com/article/ecb-bonds-lending-idUSL5N0W74O120150305 |archive-url=http://web.archive.org/web/20210516012056/https://www.reuters.com/article/ecb-bonds-lending-idUSL5N0W74O120150305 |archive-date=2021-05-16 |access-date=2025-03-03 |work=Reuters |language=en-US}}

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.{{Cite news |last=Resch |first=Renate |date=2019-09-24 |title=Qualitätssiegel für Brachelener Schule |work=Rheinische Post |pages=18 |language=de}}

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.{{Cite web |last=Bühren |first=Katja |date=2020-05-08 |title=Düsseldorf: Neubauten für NRW.Bank und Finanzministerium |url=https://www.iz.de/projekte/news/-duesseldorf-neubauten-fuer-nrw.bank-und-finanzministerium-1000070699 |access-date=2025-03-03 |website=Immobilien Zeitung |language=de}}{{Cite web |last=Ingel |first=Marc |date=2024-10-28 |title=Die Carlstadt im neuen Angesicht |url=https://www.wz.de/app/consent/?ref=https://www.wz.de/nrw/duesseldorf-was-sich-durch-die-gruene-haroldbucht-aendert_aid-120531921 |access-date=2025-03-03 |website=Westdeutsche Zeitung |language=de}}

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.{{Cite news |last=Schmalen |first=Lothar |date=2020-03-29 |title=Schnelle Kredite für Firmen in Corona-Krise |work=Neue Westfälische |pages=7 |language=de}}{{Cite news |last=Kolle |first=Gabriele |date=2020-03-19 |title=Sonderkredite und Krisenfonds sollen Unternehmen retten |work=Ruhr Nachrichten |pages=4 |language=de}}{{Cite news |last=Schmalen |first=Lothar |date=2020-04-22 |title=Neue Kredithilfen für Kommunen |work=Neue Westfälische |pages=1 |language=de}} Following the 2021 European floods, NRW.Bank introduced promotional programmes to help with flood damage recovery.{{Cite news |date=2024-11-18 |title=Mehr als 80 Millionen Fluthilfe |work=Westfalenpost |pages=19 |language=de}}{{Cite news |date=2021-08-27 |title=Land NRW sagt Bürgern schnelle Hilfe für Wiederaufbau |work=Die Welt |language=de}}

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.{{Cite news |last= |first= |date=2015-04-14 |title=Germany's NRW Bank sues over Austrian bad bank bonds |url=https://www.reuters.com/article/nrw-bank-heta-asset-lawsuit-idUSL5N0XB47O20150414 |archive-url=http://web.archive.org/web/20210516160144/https://www.reuters.com/article/nrw-bank-heta-asset-lawsuit-idUSL5N0XB47O20150414 |archive-date=2021-05-16 |access-date=2025-03-03 |work=Reuters |language=en-US}} 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."{{Cite news |last= |first= |date=2015-04-16 |title=German state asks Schaeuble to intervene in Heta case |url=https://www.reuters.com/article/austria-heta-germany-idUSL5N0XD4J120150416 |archive-url=http://web.archive.org/web/20230625074602/https://www.reuters.com/article/austria-heta-germany-idUSL5N0XD4J120150416 |archive-date=2023-06-25 |access-date=2025-03-03 |work=Reuters |language=en-US}}

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.(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{{Cite news |last=Bastian |first=Nicole |last2=Landgraf |first2=Robert |last3=Osman |first3=Yasmin |last4=Menzel |first4=Stefan |date=2012-02-13 |title=NRW-Bank groß im Geschäft mit Derivaten |work=Handelsblatt |language=de}} The North Rhine-Westphalia Constitutional Court ruled in 2011 that the North Rhine-Westphalia State Court of Audit may comprehensively audit the bank.(in German) VGH NRW, Urteil vom 13. Dezember 2011, Az: VGH 11/10

{{Portal|Banks}}

• German public banking sector

{{Reflist}}

• [https://www.nrwbank.de/en/ Bank Official website]
• [https://portal.mvp.bafin.de/database/InstInfo/institutDetails.do?cmd=loadInstitutAction&institutId=118627 NRW.Bank] in the corporate database of the German Federal Financial Supervisory Authority
• [https://www.nrwbank.de/de/info-und-service/finanzberichte/ Finance Publications]
• [https://recht.nrw.de/lmi/owa/br_vbl_detail_text?anw_nr=6&vd_id=14982&ver=8&val=14982&sg=0&menu=1&vd_back=N Statutes of NRW.Bank dated 27 March 2015]

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Category:Banks established in 2002

Category:Companies based in Düsseldorf

Category:2002 establishments in Germany

Category:Sub-national development banks

Category:Government-owned banks of Germany

Category:Government of North Rhine-Westphalia