Depfa Bank
| Company type | Public (formerly) |
|---|---|
| Industry | Financial services |
| Founded | 1922 |
| Defunct | 2014 |
| Headquarters | Dublin , Ireland |
Area served | Public sector, infrastructure development |
| Products | Financial services, public sector finance, infrastructure funding |
DEPFA Bank plc was a German-Irish financial institution headquartered in Dublin until 2014, specializing in providing financial services to the public sector and funding major infrastructure developments. Its name originates from Deutsche Pfandbriefbank.
History
Established in 1922 by the Prussian government with the purpose of supporting residential construction financing, DEPFA initially operated as a federally owned entity focused on mortgage lending throughout the 1950s. After losing its tax-exempt status during the 1970s, the institution broadened its scope to include commercial loans and became Germany's leading issuer of public covered bonds. The company underwent privatization in 1990 and was subsequently listed on the Frankfurt Stock Exchange in 1991.
During the late 1990s, DEPFA underwent legal restructuring and moved its headquarters to Dublin’s IFSC in Ireland by 2002, facilitated by specific Irish legislative provisions. In October 2007, German mortgage lender Hypo Real Estate acquired DEPFA.
The bank encountered significant liquidity challenges amid the 2008 global financial crisis, difficulties that were intensified by inadequate Irish regulatory oversight during the ensuing Irish banking turmoil. DEPFA had underwritten municipal bonds in the United States that experienced credit downgrades, compelling the bank to repurchase these securities. This situation severely impacted its short-term financing and liquidity position.
Following government intervention and bailout measures, full ownership of DEPFA’s parent company, Hypo Real Estate, was assumed by the German government, which helped restore stability to the bank’s market standing.
External links
- Articles with short description
- Banks established in 1922
- 2014 disestablishments in Ireland
- Financial services companies based in Dublin (city)
- Defunct banks of Germany
- Defunct banks of Ireland
- German companies established in 1922
- German companies disestablished in 2014
- Companies formerly in the MDAX
- European bank stubs