Growing competition in the credit market

Hamburgische Landesbank, which usually finances hotels and logistics centres, has officially begun operating in Poland and has already invested in  a retail centre and office project. Its main shareholders are the city of Hamburg and Landesbank Schleswig-Holstein.

"We want to give credit to big projects", declared Robert Sztemberg, Head of the bank's Polish representation. EURO 15 million will be allocated to direct investments and EURO 10 mln for  consortium involvement.
The bank is assuming nothing about the size of the credit portfolio after its first year in Poland but is to analyse its achievements in the country after three years. Despite any success that the bank might have, it is unlikely to open a branch in Warsaw, as operating costs would be too high.

Not so conservative
Given that HLB is not a mortgage bank and its real estate appraisals are not so closely standardised, market prices will not be the sole influence on how it operates:
"We will consider project appraisals prepared by our experts first of all, which will be based on the bank's experience and other factors. External experts' opinions will neither be neglected nor decisive", says Robert Sztemberg.
The Bank has announced that it will issue loans of up to 100 percent for real estate investments, (though not very often), for a 10 year period. The value of any agreements signed before the competion of projects, should be at least equal to any interest payable on the credit.

Certain of  success
Will Hamburgishe Landesbank have to struggle for its position on the local market, given the impending merger of three big German mortgage banks (Eurohypo, Deutsche Hypothekenbanku and Rheinische Hypo), which  also operate on the Polish market?
"No", says Robert Sztemberg. ,The merger decreases the number of players on the market. We are currently working with each of these banks and we will continue to do so after they merge."
HLB is itself likely to merge with Landesbank Schleswig-Holstein in the future.