Press Release: State aid: Commission temporarily authorises recapitalisation and asset relief for German bank LBBW

The European Commission granted temporary clearance to a recapitalisation and an asset relief measure provided to Landesbank Baden-Württemberg (LBBW) by the German State of Baden-Württemberg. The recapitalisation complied with the requirements set out in the Commission's communication on the recapitalisation of financial institutions, because it foresaw an adequate remuneration. However, the Commission had doubts whether the asset relief measure can be considered fully in line with the Commission's guidance on asset relief. Therefore, the Commission will undertake a further in-depth analysis of the complex valuation of the impaired assets before taking a final decision. Both measures have been approved for six months.