Landesbank Baden-Württemberg

Anstalt des öffentlichen Rechts

registered offices:

Stuttgart, Karlsruhe,

Mannheim, Mainz

HRA 12704

Local Court Stuttgart

HRA 4356, HRA 104 440

Local Court Mannheim

HRA 40687

Local Court Mainz

BIC/SWIFT-Code SOLADEST

VAT No: DE 147 800 343

kontakt@LBBW.de

www.LBBW.de

Board of Managing Directors:

Rainer Neske (Chairman),

Michael Horn (Deputy Chairman),

Karl Manfred Lochner, Dr. Christian Ricken, 

Thorsten Schönenberger, Volker Wirth

1, 2018

 

LBBW TAILORED RESOLUTION PLAN

Public Section

December 31, 2018
U.S. Resolution Plan

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Contents

1 Public Section........................................................................................................................................2

1.1 Material Entities.............................................................................................................................2

1.2 Core Business Lines ......................................................................................................................3

1.3 Summary of Financial Information, Capital and Major Funding Sources ................................................4

1.4 Derivatives and Hedging Activities ..................................................................................................5

1.5 Memberships in Material Payment, Clearing and Settlement Systems .................................................5

1.6 Domestic and Foreign Operations....................................................................................................5

1.7 Material Supervisory Authorities ......................................................................................................6

1.8 Principal Officers ...........................................................................................................................6

1.9 Corporate Governance Structure and Processes Related to Resolution Planning ..................................7

1.10 Material Management Information Systems.......................................................................................7

1.11 High Level Description of the Covered Company’s Resolution Strategy ................................................7
U.S. Resolution Plan

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1 Public Section

Landesbank Baden-Württemberg (“LBBW”), a public law institution in the Federal Republic of Germany, is 

a foreign-based covered company for purposes of (i) section 165(d) of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act, 12 U.S.C. § 5365(d) (the “Dodd-Frank Act”) and (ii) the implementing

regulation jointly issued by the Board of Governors of the Federal Reserve System (the “Board”) and the 

Federal Deposit Insurance Corporation (the “FDIC” and, together with the Board, the “Agencies”) 

(“Regulation QQ”).

LBBW submitted its initial tailored resolution plan under Regulation QQ on December 31, 2013 (the “Initial 

Plan”). For this annual re-submission, LBBW remains eligible to file a tailored resolution plan pursuant to 

Regulation QQ and other applicable legal requirements.1 Furthermore, the Agencies have identified LBBW 

as a covered company that may reduce the informational content that LBBW would otherwise be required 

to provide in its resolution plan submissions due by December 31 of 2016, 2017, and 2018 (the “Reduced 

Plans”), provided that LBBW satisfies certain criteria. LBBW, as the covered company, satisfies all the 

conditions for the submission of a Reduced Plan, and as a result, focuses this 2018 submission of its

resolution plan (this “2018 Tailored Plan”) on information required by sections 243.4(b)(2), 243.4(b)(3) and 

243.4(c)(1)(vi) (if applicable) of Regulation QQ. Furthermore, LBBW includes this Public Section to the 

2018 Tailored Plan, which describes the business of LBBW as the covered company, and includes, to the 

extent material to an understanding of LBBW, the eleven informational elements required by section 

243.8(c) of Regulation QQ. 

1.1 Material Entities

LBBW is a foreign banking organization with a US branch located in New York (the “New York Branch”) 

and is treated as a bank holding company. LBBW additionally is a financial holding company and is 

considered the covered company for purposes of Regulation QQ. 

In preparing this 2018 Tailored Plan, LBBW identified its New York Branch as a “material entity” based on 

the criteria set forth in Regulation QQ. The following section provides an overview of LBBW’s business 

managed out of its head office in Stuttgart (“LBBW Head Office”) and the New York Branch. 

LBBW (Covered Company)

LBBW is a public law institution with four registered offices throughout Germany (located in the cities of 

Stuttgart, Karlsruhe, Mannheim, and Mainz) and operates over 200 branches under three different regional 

brand names. It is owned by (i) Sparkassenverband Baden-Württemberg (40.534%), (ii) the State of BadenWürttemberg (40.534%, directly and indirectly via the Landesbeteiligungen Baden-Württemberg GmbH)

and (iii) the city of Stuttgart (18.932%). 

LBBW offers a full range of retail and commercial banking products, consistent with it being a large, 

universal bank, directly through its branch network based primarily in the regions of Germany in which it 

operates. Additionally, LBBW offers the services of an international commercial bank, servicing the needs 

of its savings bank partners and international corporate customers requiring real estate financing, corporate 

financing or capital markets transaction services through seventeen international branches and 

representative offices. LBBW also serves as the central bank for the savings and loan institutions in the 

German states of Baden-Württemberg, Rhineland-Palatinate, and Saxony.

 

1 See 12 C.F.R. § 243.4(a)(3) (Board) and 12 C.F.R. § 381.4(a)(3) (FDIC).
U.S. Resolution Plan

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New York Branch

LBBW acquired a license from the State of New York Banking Department in 1998 to maintain a branch in 

New York, New York. The New York Branch operates under the New York Banking Law (the “NYBL”) and 

is supervised by the New York State Department of Financial Services (the “NYSDFS”) and the Board using 

the Federal Reserve Bank of New York (the “FRBNY”) examiners. The New York Branch is part of LBBW’s 

global branch network and is managed out of its New York location. As an extension of LBBW in the US, 

the New York Branch falls under the governance and oversight of LBBW’s principal officers and relevant

LBBW Head Office divisions.

LBBW maintains the New York Branch to:

• Achieve regional diversification for LBBW’s real estate portfolio with its real estate loan business 

in the US;

• Fund local customer activity through deposits and borrowings in the financial markets; 

• Support the financial needs of US subsidiaries of German, Swiss and Austrian corporate 

customers; 

• Provide local expertise on the US financial markets to LBBW’s non-US operations.

1.2 Core Business Lines

LBBW has identified three core business lines for its US operations as the term is defined in Regulation 

QQ. For purposes of this 2018 Tailored Plan, the core business lines are (i) Real Estate Finance, (ii) 

Treasury & Capital Markets and (iii) Corporate & Institutional Banking. In the US, these three core business 

lines operate out of the New York Branch. The following section provides an overview of the core business 

lines.

Real Estate Finance (“Real Estate Finance”)

Real Estate Finance provides commercial real estate financing for office, retail, multifamily, and logistics 

properties located in major markets throughout the U.S. and Canada. Real Estate Finance originates, 

underwrites, and executes primarily senior mortgage financings, including term and construction loans. 

Treasury & Capital Markets (“Treasury & Capital Markets”)

Treasury & Capital Markets offers a variety of products to customers of the New York Branch, including 

repurchase agreements, deposits, loans, commercial paper, certificates of deposits, foreign exchange 

(“FX”) spot, swaps and forward transactions and standby letter of credits mainly to Corporate & Institutional 

Banking and Real Estate Finance customers.

Corporate & Institutional Banking (“Corporate & Institutional Banking”)

Corporate & Institutional Banking focuses on advising and assisting subsidiaries of German, Swiss and 

Austrian companies operating in the US, Canada and Mexico. Banking products offered to these customers 

include loans, working capital lines, standby letters of credit, hedging solutions and deposits.
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1.3 Summary of Financial Information, Capital and Major Funding Sources

Balance Sheet

The following balance sheet summarizes the New York Branch’s assets and liabilities as of December 31, 

2017.

Table 1-1: Balance Sheet Information for the New York Branch as of December 31, 2017 

Statement of Financial Position (According to IFRS) Amount (USD in millions)

Cash reserve 5,746.52 

Loans and advances to other banks 1,589.01 

Loans and advances to customers 5,508.87 

Financial Assets measured at Amortized Cost (7.49)

Allowance for losses on loans and advances (2.08)

Financial Assets measured at fair value through profit and loss 213.47 

Investment securities - 

Investments accounted for using the equity method 1,061.58 

Portfolio hedge adjustment attributable to assets - 

Non-current assets / disposal groups held for sale - 

Intangible assets 2.21 

Investment property

Property and Equipment 0.31 

Income tax assets 45.40 

Deferred TAX 

Other assets 0.73 

Total assets 14,158.53 

Deposits from other banks 2,937.60 

Deposits due to customers 1,442.70 

Securitized liabilities 9,536.16 

Financial liabilities measured at FV through profit and loss 30.74 

Portfolio hedge adjustment attributable to liabilities - 

Provisions 7.00 

Liabilities related to disposal groups held for sale - 

Income tax liabilities 1.34 

Other liabilities 25.19 

Subordinated Debt

Total liabilities 13,980.73 

Equity 177.80 

Equity and liabilities 14,158.53 
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The New York Branch has the benefit of being part of LBBW’s global network, for which capital is 

managed centrally out of the LBBW Head Office. The New York Branch receives its “working capital” 

from LBBW Head Office in accordance with the periodic approval of the board of managing directors of 

LBBW (the “Board of Managing Directors”). As of December 31, 2017, this capital amounted to USD $

685 million. The New York Branch receives from time to time an interoffice memorandum stating the date 

and the amount of any increase or decrease in the net capital amount owed to LBBW Head Office.

Major Funding Sources 

The New York Branch’s primary source of funding is client deposits and issuance of commercial paper and 

certificate of deposits. The New York Branch Treasury & Capital Markets business also raises funding 

through its repurchase agreement and securities lending activities. LBBW Head Office is also a funding 

source for the New York Branch. 

In terms of liquidity, the New York Branch has an account at the FRBNY where excess liquidity is deposited 

and is callable daily. The New York Branch also has access to the Federal Reserve Discount Window, and 

the New York Branch has pledged collateral to the FRBNY available to cover any overnight liquidity needs. 

The collateral is comprised of securities pledged via the Depository Trust & Clearing Corporation (“DTCC”) 

and Clearstream and real estate loans. 

1.4 Derivatives and Hedging Activities

The New York Branch, through Treasury & Capital Markets, provides execution and hedging services for 

Real Estate Finance and Corporate & Institutional Banking customers, including customer-related foreign 

exchange transaction services ( including FX forwards, FX swaps and FX spots). FX forward, FX swap and

FX spot transactions are driven by demand from Corporate & Institutional Banking customers and Treasury 

& Capital Markets services these customers by swapping funding provided in EUR by LBBW Head Office 

for USD.

As part of its asset/liability management, the New York Branch manages its interest rate and spread 

widening risk with hedging activities with LBBW Head Office. 

1.5 Memberships in Material Payment, Clearing and Settlement Systems

The New York Branch utilizes Financial Market Utilities (the “FMUs”) for day-to-day operations including 

payment, clearing and settlement activities. The table below highlights the FMUs utilized by the New York 

Branch.

Table 1-2: FMU Memberships

FMU Description

DTCC

(includes Fixed Income Clearing Corporation 

(FICC))

Payment and book-entry Government securities processing 

services

SWIFT Payment messaging services

Fedwire Clearing, settlement and information services for money market 

instruments

1.6 Domestic and Foreign Operations 

LBBW offers the full range of commercial and retail banking products and services of a large bank to its 

core regions of Germany through more than 200 branches operated under three different regional brand 
U.S. Resolution Plan

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names. The regions covered by LBBW include the states of Baden-Württemberg, Saxony, and RhinelandPalatinate, and the neighboring economic areas, and LBBW provides these services through the following 

retail banking subsidiaries, respectively:

• Baden-Württembergische Bank (“BW-Bank”), operates the private retail and corporate customer 

business in the core market of Baden-Württemberg. BW-Bank also functions as a savings bank 

within the state capital region of Stuttgart.

• Rheinland-Pfalz Bank services primarily the banking needs of small and medium corporate 

customers in Rhineland-Palatinate and neighboring regions.

Additionally, LBBW offers the services of an international commercial bank to its international corporate 

customers and savings bank partners requiring real estate financing, corporate financing or capital markets 

transaction services. These services are provided through seventeen international branches or 

representative offices, including branches located in New York, London, Singapore and Seoul, which offer 

support to LBBW’s corporate customers and savings bank partners by providing regional and local 

expertise, market know-how, and financial solutions. 

To complement this global presence, LBBW also maintains “German Centers” in Beijing, Singapore, Mexico 

City and Moscow. The German Centers support small and medium-sized German companies venturing 

into foreign markets with office space solutions, administrative services and quick access to LBBW 

networks within the region in which they are located.

1.7 Material Supervisory Authorities 

The US supervisory authorities responsible for supervision of the New York Branch are the NYSDFS and 

the Board, using the examiners from the FRBNY. LBBW’s primary (home country) supervisory authorities 

are the German Federal Financial and Supervisory Authority (Bundesanstalt für 

Finanzdienstleistungsaufsicht (BaFin)), the Central Bank for the Federal Republic of Germany (Die 

Deutsche Bundesbank) and the European Central Bank. LBBW Head Office is also subject to the 

supervision of bank supervisors in host countries in which it maintains a branch or representative office.

1.8 Principal Officers 

The table below identifies LBBW’s principal officers.

Table 1-3: LBBW Principal Officers as of December 31, 2017 

Name Role Responsibilities

Rainer Neske Chairman of the Board of Managing Directors Corporate Center

Michael Horn Deputy Chairman of the Board of Managing 

Directors

Private and Business 

Customers

Thorsten Schönenberger Member of the Board of Managing Directors Real Assets

Dr. Christian Ricken Member of the Board of Managing Directors Financial Markets and Asset 

Management/International 

Business

Volker Wirth Member of the Board of Managing Directors Risk Management, 

Compliance and Group 

Internal Auditing

Karl Manfred Lochner Member of the Board of Managing Directors Corporate Customers
U.S. Resolution Plan

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1.9 Corporate Governance Structure and Processes Related to Resolution Planning 

Resolution Planning for LBBW’s U.S. operations is integrated into LBBW’s governance framework for 

recovery and resolution planning. As such, authority and responsibility of LBBW’s Resolution Plan rests 

with the Board of Managing Directors. Annual updates and revisions are prepared by LBBW’s New York 

Branch, in coordination with the organizational unit responsible for LBBW’s recovery and resolution 

planning and approved by the Board of Managing Directors.

1.10 Material Management Information Systems 

The New York Branch, including the identified core business lines, uses Management Information Systems 

(“MIS”) to support business activities. MIS provides the information required to understand and evaluate 

financial information, risk management and performance and to enable management to strategically plan. 

LBBW recognizes the importance of producing information in a timely manner. The New York Branch relies 

on reports that are both automatically and manually generated. 

LBBW also has a business continuity plan and procedures for data backup for the New York Branch. 

In the event of a resolution or periods leading up to a possible resolution, LBBW and the New York Branch 

have procedures in place for providing its supervisory authorities with pertinent information in a timely 

manner. 

1.11 High Level Description of the Covered Company’s Resolution Strategy

The strategies proposed in the Initial Plan and the 2016, as well as the 2018 Tailored Plan aim to achieve 

resolution of the New York Branch to maximize recovery to creditors and avoid any significant adverse 

effects on US financial stability. To best meet these objectives, the overall resolution strategy assumes the 

New York Branch’s operations would gradually be reduced until it is desirable or necessary to resolve the 

New York Branch in an orderly manner, which would mainly involve maintaining minimally necessary 

operations to facilitate the sale/liquidation of all of the New York Branch’s assets, including its core business 

lines.

Pursuant to NYBL, the Resolution Plan assumes that the Superintendent of the NYSDFS would take 

possession of the New York Branch, “ring-fence” all assets of LBBW in the State of New York and proceed 

with a rapid and orderly resolution of the New York Branch.