Downsized and Focused

In line with other financial institutions’ actions, HSH Nordbank’s Management and Supervisory Boards outlined a proposal this week for the restructuring of the bank. Specifically, they are calling for the reduction of portfolios, the spin-off of non-strategic activities and the structure of a regional core bank. The net effect will be a substantial reduction in the total assets of the core bank as well as a more parochial focus.

The proposed core business units include Corporate Clients, Private Banking, Savings Banks and Real Estate. It is intended that in the future they will have an even greater focus on North Germany and domestic clients. Bringing the focus home allows a better understanding of the client base and credit risk as well as a quid pro quo for government intervention

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