Press Release: State aid: European Commission approves restructuring of German savings bank Sparkasse KölnBonn

The European Commission has approved under EU state aid rules a €650 million recapitalisation provided by Germany in the context of the restructuring of Sparkasse KölnBonn. According to the restructuring plan the bank will concentrate on providing traditional retail banking services to retail customers and small and medium-sized firms, withdraw from other activities and divest non-core subsidiaries. The Commission concluded that Sparkasse KölnBonn's restructuring plan is appropriate to restore the bank's viability, while addressing competition distortions brought about by the state support.