Refinancing Banks in an Unstable Financial Environment

Abstract

Kreditanstalt fur Wiederaufbau (KfW), the German ‘Reconstruction Loan Corporation’ as the original name read, primarily conducts credit activities aimed at promoting the German economy: infrastructure financing, export and project finance, small and medium-sized enterprise financing as a second-tier institution, refinancing of venture capital companies, and many other operations. Another section works for the promotion of developing and transforming economies, mostly as an implementing agency for the German Federal Government within the framework of official German Financial Cooperation, but also as an agent of the European Commission or of other individual countries. Here KfW finances projects in various economic sectors, such as energy, water supply, health, infrastructure and others. Another important field of activity is the promotion of efficient and stable financial sectors. At present, financial sector support accounts on average for roughly 10 per cent of KfW’s annual commitments.