European governments have injected billions into ailing banks since the beginning of the financial crisis in 2008. But now, as pressure to return these banks to the commercial sector mounts, governments are considering a number of strategies to get the banks off their hands.
But the picture is not the same all over Europe and different countries have propped up different sorts of financial institutions. In the UK, for example, the government rescued - and fully nationalised in one instance - global lenders that are also very active high-street lenders. In Germany, the banks bailed out were all sizeable real estate lenders. Over in Spain, the cajas, or savings banks, have benefited the most from state aid.
Today, under pressure from the EU and their populations, governments are looking for exit strategies. Germany’s market stabilisation fund, SoFFin, which was set up after Hypo Real collapsed in October 2008, had provided EUR 84.89 bn of stabilisation measures by 2 February 2011, of which contracted guarantees accounted for EUR 55.61 bn and capital support measures for EUR 29.28 bn. Banks that have benefited from SoFFin’s aid include WestLB, Eurohypo, Aareal Bank and Hypo Real Estate, now known as Deutsche Pfandbriefbank.
The full article appears in the April edition of PropertyEU Magazine. Click on the link below to subscribe | 
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