By autumn, three innovations emerged that – beyond helping German banks maintain strong balance sheets – should enhance the country’s attractiveness as a financial centre.
The first of the innovations was Germany’s first “true sale” securitisation, a deal considered crucial to the future development of the country’s asset-backed securities (ABS) market. The second was the advent of a non-performing loan (NPL) industry in Germany. And the third was the launch of an exchange allowing German banks to buy and sell single loans so that credit risk can be spread more evenly.