Bayern, StanChart partner up
(16 November 2016 – Germany) German-based BayernLB has entered into an agreement with Standard Chartered (StanChart) to get a foothold in Asia in a bid to capitalise on its domestic rivals’ current fortunes.
StanChart will help finance Asian operations for German companies in a bid to attract export focus SMEs to the region.
In turn, the partnership will see BayernLB, a local government-owned lender, assist in providing loans for clients of StanChart looking to move into the German market.
No financial targets for the partnership were given.
Ratings' agency, Moody has given the German bank an A2 rating, providing it with a significant advantage over competitors Deutsche (Baa2) and Commerzbank (Baa1).
"The single-A rating has such importance you can't imagine," BayernLB's corporate banking head Michael Buecker told media.
"A lot of other banks now still have to detoxify."
BayernLB has also had to recover from major setbacks in recent years, including at the height of the financial crisis when the German federal state of Bavaria which owns the bank funded a €10 billion (A$14.3 billion) bailout of the lender.
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