COMPETENCE. The German mortgage banks as capital market

COMPETENCE. The German mortgage
banks as capital market partners
An important reason for the success
regarding the capital market policy are the
ongoing talks between the Association of German
Mortgage Banks and the Federal Government
- for instance, with the Federal Ministry of Justice
and the Federal Ministry of Finance on the further
development of the Mortgage Bank Act and the
Pfandbrief as a major capital market instrument.
Dr Hans Fey, Member of the Board,
Bayerische Hypotheken- und Wechsel-Bank AG, Munich
"Before the start of European Monetary Union
and the euro, the positioning of the Pfandbrief
on the international financial markets is a
decisive objective of the German mortgage
banks. All forces must be combined
to achieve it. A strong, independent
Association of German Mortgage Banks
is imperative in fulfilling this aim"
Decisive progress - both national and international
Nationally, as well as in Europe and worldwide, the German mortgage banks have finally been able to make decisive progress
in their business development - and the Association of German Mortgage Banks has contributed towards it.
■ In 2003, the German mortgage banks sold bonds in the amount of 134 billion Euro - a new record. These gross sales
enabled the German mortgage banks to increase their market share on the German capital market to around 33 percent. This
makes them the largest group of issuers.
■ The Jumbo Pfandbrief is greatly in demand all over the world. Thanks to the standardisation achieved at
Association level, this fixed-interest instrument has been able to develop into a highly liquid form of investment.
■ The popularisation of the Pfandbrief, with its rich heritage, is one of the major achievements of the
Association of German Mortgage Banks and of the joint advertising it has carried out since 1956.
■ The excellent ratings of the Pfandbrief by the rating agencies are also the result of the strict standards
of the Mortgage Bank Act and many talks with the agencies carried out at Association level.
■ The European Investment Directive plays an important role in this respect, to which the Association of
German Mortgage Banks and the European Mortgage Bond Committee made an active contribution. Of all bonds, the
Pfandbrief is the European best-seller.
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The Association of German Mortgage Banks has also been engaged in dialogue with the
Federal Banking Supervisory Authority for many years. In this way the Association
contributes to the feasibility of adapting the business of the member banks to the changing market
conditions.
The confidence of investors and the general
public is one of the prerequisites for a smoothly
operating capital market. The popularisation
of the Pfandbrief, with its rich heritage,
is one of the major achievements of the Association
of German Mortgage Banks with the joint advertising
it has conducted since 1956 both in Germany and
abroad. Moreover, the Association also takes account
of the increasing professionalism of the
capital market - for example with the creation
of the Pfandbrief index (PEX) and by providing
constant information for institutional investors
worldwide.
The important tasks of the Association of German Mortgage Banks
include the constant readiness to talk to the German
Bundesbank on all matters relating to the capital market, including
the cooperation of the members of the Central Capital
Market Committee, now of all times, as the Bundesbank prepares
for European Monetary Union.
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