COMMISSION DECISION
of 20 October 2004
on aid from Germany for Westdeutsche Landesbank — Girozentrale (WestLB), now WestLB AG
(notified under document number C(2004) 3925)
(Only the German text is authentic)
(Text with EEA relevance)
(2006/737/EC)
I. PROCEDURE
1. ADMINISTRATIVE PROCEDURE
‘Article 1
Article 2
Article 3
2. COURT PROCEDURE
3. RESUMED ADMINISTRATIVE PROCEDURE
II. DETAILED DESCRIPTION OF THE MEASURE
1. WESTDEUTSCHE LANDESBANK GIROZENTRALE (WESTLB)
2. WOHNUNGSBAUFÖRDERUNGSANSTALT (WFA)
3. CAPITAL REQUIREMENTS UNDER THE OWN FUNDS DIRECTIVE AND THE SOLVENCY RATIO DIRECTIVE
4. THE TRANSFER AND ITS EFFECTS
a) THE TRANSFER
b) VALUE OF WFA
c) EFFECTS OF WFA'S TRANSFER ON WESTLB
(DEM million) |
||
(at 31 December) |
1991 |
1992 |
|
|
|
Risk-adjusted assets of WestLB (without Wfa) |
83 000 |
91 209 |
Risk-adjusted assets of Wfa |
13 497 |
14 398 |
Risk-adjusted assets of WestLB (with Wfa)(20) |
|
105 607 |
|
|
|
Required own funds of WestLB(21) (= a) |
4 611 |
5 867 |
Required own funds of WestLB without Wfa(21) (= b) |
|
5 067 |
|
|
|
WestLB own funds (= c) |
5 090 |
9 190 |
WestLB own funds without Wfa (= d) |
|
5 190 |
|
|
|
Utilisation rate of WestLB own funds (= a/c) |
91 % |
64 % |
Utilisation rate of WestLB own funds without Wfa (= b/d) |
|
98 % |
(DEM million) |
|||||||||||
Average amounts |
1992(23) |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002(24) |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
271 707 |
332 616 |
378 573 |
428 622 |
470 789 |
603 797 |
693 026 |
750 558 |
782 410 |
844 743 |
519 470 |
Risk-adjusted assets |
126 071 |
120 658 |
151 482 |
156 470 |
173 858 |
204 157 |
259 237 |
[...](22) |
[...] |
[...] |
[...] |
|
|
|
|
|
|
|
|
|
|
|
|
Required original own funds (= a) |
4 758 |
4 827 |
6 060 |
6 259 |
6 954 |
8 167 |
10 370 |
[...] |
[...] |
[...] |
[...] |
Required total own funds (= b) |
9 351 |
9 653 |
12 119 |
12 517 |
13 908 |
16 333 |
20 739 |
[...] |
[...] |
[...] |
[...] |
|
|
|
|
|
|
|
|
|
|
|
|
Original own funds (= c) |
5 117 |
8 818 |
9 502 |
9 769 |
9 805 |
10 358 |
11 378 |
[...] |
[...] |
[...] |
[...] |
Additional own funds |
500 |
2 495 |
4 513 |
4 946 |
5 270 |
7 094 |
10 170 |
[...] |
[...] |
[...] |
[...] |
Total own funds (= d) |
5 617 |
11 313 |
14 015 |
14 715 |
15 075 |
17 452 |
21 548 |
[...] |
[...] |
[...] |
[...] |
|
|
|
|
|
|
|
|
|
|
|
|
Utilisation rate of original own funds (= a/c) |
93 % |
55 % |
64 % |
64 % |
71 % |
79 % |
91 % |
[...] |
[...] |
[...] |
[...] |
Utilisation rate of total own funds (= b/d) |
166 % |
85 % |
86 % |
85 % |
92 % |
94 % |
96 % |
[...] |
[...] |
[...] |
[...] |
d) REMUNERATION FOR THE TRANSFER OF WFA
(DEM million) |
|||||||||||
(At 31 December) |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
|
|
|
|
|
|
|
|
|
|
|
Special reserve for housing promotion |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
5 900 |
Of which accepted as original own funds |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
4 000 |
Needed for housing promotion loans of Wfa |
1 668 |
1 490 |
1 181 |
952 |
892 |
888 |
887 |
[...] |
[...] |
[...] |
[...] |
Available for WestLB |
13(29) |
2 510 |
2 819 |
3 048 |
3 108 |
3 112 |
3 113 |
[...] |
[...] |
[...] |
[...](30) |
III. COMMENTS FROM INTERESTED PARTIES
1. COMPLAINT AND OBSERVATIONS BY BDB
a) APPROPRIATE REMUNERATION FOR THE CAPITAL
i) Level of the remuneration
ii) Liquidity costs
iii) Capital basis for the calculation of the remuneration
iv) Synergy effects
b) TAX ASPECTS
c) WAIVER OF LIABILITY
2. OBSERVATIONS FROM OTHER INTERESTED PARTIES
a) ASSOCIATION FRANÇAISE DES BANQUES
b) BRITISH BANKERS' ASSOCIATION
3. OBSERVATIONS FROM WESTLB
a) GENERAL OBSERVATIONS ON THE TRANSFER
b) APPROPRIATE REMUNERATION FOR THE CAPITAL
c) SYNERGY EFFECTS
d) TAX EXEMPTIONS
e) WAIVER OF LIABILITY
IV. COMMENTS FROM GERMANY
1. MARKET-ECONOMY INVESTOR PRINCIPLE
2. APPROPRIATE REMUNERATION FOR THE CAPITAL
(DEM million) |
|||||||||||
|
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
|
|
|
|
|
|
|
|
|
|
|
Remuneration (before tax) |
0,0 |
27,9 |
30,8 |
33,4 |
33,9 |
34,0 |
34,0 |
[...] |
[...] |
[...] |
[...] |
Payment for pension entitlement of Wfa staff |
33,1 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
[...] |
[...] |
[...] |
[...] |
|
|
|
|
|
|
|
|
|
|
|
|
Total remuneration paid to the Land |
33,1 |
27,9 |
30,8 |
33,4 |
33,9 |
34,0 |
34,0 |
[...] |
[...] |
[...] |
[...] |
a) COMPARISON WITH OTHER EQUITY INSTRUMENTS
b) LIQUIDITY COSTS
c) CAPITAL BASIS FOR THE CALCULATION OF THE REMUNERATION
d) SYNERGY EFFECTS
3. TAX EXEMPTIONS
4. WAIVER OF LIABILITY
5. OBSERVATIONS ON THE COMMENTS FROM INTERESTED PARTIES
V. UNDERSTANDING BETWEEN BDB, THE LAND OF NORTH RHINE-WESTPHALIA AND WESTLB
VI. ASSESSMENT OF THE MEASURE
1. STATE RESOURCES AND FAVOURABLE TREATMENT OF A CERTAIN UNDERTAKING
2. DISTORTION OF COMPETITION AND EFFECT ON TRADE BETWEEN MEMBER STATES
3. MARKET-ECONOMY INVESTOR PRINCIPLE
a) ARTICLE 295 OF THE EC TREATY
b) SPECIFIC NATURE OF THE MEASURE
c) NO CHANGE IN OWNERSHIP STRUCTURE
d) CAPITAL BASIS FOR THE CALCULATION OF THE REMUNERATION
e) APPROPRIATE REMUNERATION FOR THE CAPITAL
i) Comparison with other equity instruments
ii) Liquidity costs
iii) Appropriate remuneration for the amount of DEM 2 500 million (EUR 1 280 million)
iv) Appropriate remuneration for the amount of DEM 3 400 million (EUR 1 740 million)
v) Synergy effects
f) INCLUSION OF THE YEAR 2002
g) AID ELEMENT
(DEM million) |
|||||||||||||
|
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
13 |
2 510 |
2 819 |
3 048 |
3 108 |
3 112 |
3 113 |
[...] |
[...] |
[...] |
[...] |
||
|
5 887 |
3 390 |
3 081 |
2 852 |
2 792 |
2 788 |
2 787 |
[...] |
[...] |
[...] |
[...] |
||
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Remuneration of 6,92 % (after tax) on point 1 |
0,9 |
173,7 |
195,1 |
210,9 |
215,1 |
215,4 |
215,4 |
[...] |
[...] |
[...] |
[...] |
||
Remuneration of 0,3 % (after tax) on point 2 |
17,7 |
10,2 |
9,2 |
8,6 |
8,4 |
8,4 |
8,4 |
[...] |
[...] |
[...] |
[...] |
||
Total remuneration in line with market conditions |
18,6 |
183,9 |
204,3 |
219,5 |
223,5 |
223,8 |
223,8 |
[...] |
[...] |
[...] |
[...] |
||
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|
|
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||
Actual remuneration (after tax) |
33,1 |
15,1 |
16,9 |
18,3 |
18,6 |
18,7 |
18,7 |
[...] |
[...] |
[...] |
[...](51) |
||
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Aid element |
-14,5 |
168,8 |
187,4 |
201,2 |
204,9 |
205,1 |
205,1 |
208,6 |
209,3 |
209,3 |
128,6 |
||
(Amount: DEM 1 913,80 million = EUR 978,51 million) |
4. TAX EXEMPTIONS
5. WAIVER OF LIABILITY
6. COMPATIBILITY OF THE MEASURE WITH THE EC TREATY
VII. CONCLUSIONS
Article 1
Article 2
Article 3
Article 4
Article 5
ANNEX
INFORMATION REGARDING THE IMPLEMENTATION OF THE COMMISSION DECISION
1. Calculation of the amount to be recovered
Date(s) of payment(1) |
Amount of aid(2) |
Currency |
Identity of recipient |
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2. Recovery measures planned or already taken
3. Recovery already effected
Date(s)(3) |
Amount of aid repaid |
Currency |
Identity of recipient |
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