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Nord/LB stakeholders in talks over business model

Thomas Mang, president of Lower Saxony's savings banks association, said the owners of Norddeutsche Landesbank Girozentrale are in the "midst of talks" over the German lender's business model, Reuters reported.

The German state of Lower Saxony holds 59% of NORD/LB, with the state of Saxony-Anhalt and other municipally owned savings banks owning the rest, Reuters noted. Mang said stakeholders are in talks given the bank's exposure to the shipping industry.

In December 2017, Nord/LB CEO Thomas Bürkle said the bank's business model necessitates a common equity Tier 1 ratio of at least 13%. Mang said Nord/LB's owners will have to discuss whether the savings banks of Lower Saxony would participate in a capital hike if needed, according to the newswire.

Nord/LB, which made a loss of about €2 billion in 2016, aims to break even in 2017.