Feature: German financiers' cautious return

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09 February 2011

Nine German financiers discuss the challenges facing their industry.

Ask most airlines where to find big-ticket underwriting and they will point to Europe, with German banks playing a key role. But Germany’s large banks suffered during the financial crisis, and sharply cut lending.

In 2009 BayernLB closed its aircraft and shipping finance business. WestLB closed offices in London and New York in 2008, while HSH Nordbank put most lending on hold in 2009-2010.

To reduce risk, many lenders decided to participate in club deals rather than underwrite whole transactions.

With the new Aircraft Sector Understanding effective from February 1, the cost of export credit will rise, making commercial loans more desirable. But the Germans are emerging from the financial crisis cautiously.

Airfinance Journal speaks to a panel of German financiers about who is still in the market and what transactions they would consider.

How far away are we from pre-crisis lending levels?

Pamela Smith, managing director, aviation,...

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