The banks, Hypo Real Estate (HRE) and WestLB, have decided to repatriate their international funding business – including the issuance of covered bonds – to Germany from the Irish capital.
According to both banks, a major factor in their decision was Germany’s new Pfandbrief (German covered bond) law. The law, which took effect in mid-July, gives all banks active in Germany the right to issue Pfandbriefe.