"We look more closely at loans to the auto industry"

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Landesbank Hessen-Thüringen in Frankfurt

The consequences of possible trade conflicts also lead to the Landesbank wanting to be more cautious.


(Photo: AP)

Helaba will be more cautious about its involvement in this corporate segment, given the challenges faced by the automotive industry. "We are looking more closely at lending to the auto industry," said Henrich Maass, Head of Sales Strategy, in an interview with Bloomberg. "In our opinion, there are two striking risks here. On the one hand, the consequences of possible trade conflicts and, on the other, the structural change away from the internal combustion engine. "

Only on Tuesday, the automotive supplier Continental AG disclosed charges of around 2.5 billion euros. Behind this is the assumption that vehicle production will probably not pick up significantly over the next five years. On the same day, the "Stuttgarter Zeitung" reported that up to 1600 jobs should be lost at Robert Bosch GmbH.

Maaß noted that there had been some market failures in the automotive sector on the market. "For us, as with any bank, when we see risks, we adjust the volume of credit or change the credit structures to include additional collateral for us as lenders," he said.

Manfred Lochner, LBBW's Chief Corporate Officer, recently said in an interview with the Börsen-Zeitung that his institute wanted to "slightly reduce" exposures to the automotive sector.

At almost the beginning of October, Hamburg Commercial Bank AG, the former HSH Nordbank, warned caution in the corporate customer business. In view of the worse prospects for the German economy, the bank wants to tighten its credit standards and curb new business in some areas. "We are even more selective," said CEO Stefan Ermisch at that time.

More: Bank economists swear investors on hard times.

Bank (t) Helaba (t) Credit (t) Automotive (t) Continental (t) Bosch (t) Supplier (t) Combustion (t) Interview (t) Hamburg Commercial Bank (t) LBBW (t) Stuttgarter Zeitung (t) Banks & Credit Institutions

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