History
New start in Wiesbaden
The bank looked for a new home after the war and decided on Wiesbaden, which had scarcely been damaged by the war and was situated in the heart of West Germany. The business documents kept in Berlin were transported to Wiesbaden, Freising was wound up and the special administration in the western occupied zones ended.
It was not until 28 September 1949, that the banking supervisory authority in Hessen approved the relocation of the Berlin head office with effect from 20 February 1945 and recognised Wiesbaden as the base for the bank's executive management. The bank was then also permitted to undertake new business in the western areas. The bank's balance sheet total had shrunk to DM 44.5 m in the temporary account drawn up for conversion into Deutsche Mark as at 21 June 1948.
In summer 1947, the municipal authorities in Wiesbaden provided the bank with its first building and another followed in 1952. In 1954, the bank started on the construction of a new building in Paulinenstraße in the spa quarter in Wiesbaden and the bank's main administration was able to move in a year later.
The bank changes its name
New business restarted at the beginning of 1950 and the share-holding owned by the former Prussian government was transferred to the federal government in 1954. As a federal corporation under public law, the bank was subject to supervision by the federal government. At the same time, the name change to 'Deutsche Pfandbriefanstalt', carried out by the regional governments responsible as early as July 1951, was formally authorised.
According to its memorandum and articles of association the bank granted loans for residential property, which in terms of size, quality and rent, were intended and suitable for large sections of the population. Achieving a profit was not the bank's main purpose and this position was maintained when, in 1976, the bank lost its status, held since May 1934, of being an instrument of government housing policy and became liable for tax.
In 1954, the bank's balance sheet total exceeded a billion for the first time, in 1979, DM 25 bn and in 1983, DM 50 bn for the first time. Since 1993, the balance sheet total has exceeded DM 100 bn.
On the lending side, while traditional residential construction finance enjoyed steady growth, public sector lending rose sharply from the mid 1970s onwards. As the government needed substantial funds for the next phase of construction, urban development and infrastructure measures, it seemed sensible that Deutsche Pfandbriefanstalt, as the government bank specialising in long term finance, should also become involved in financing the public budget. From 1976, the bank was also able to offer commercial loans after it lost its tax exemption. The refinancing side developed analogously with the bank becoming one of the largest issuers of Pfandbriefe in Germany.
At the beginning of 1979, Deutsche Pfandbriefanstalt took a majority holding in Deutsche Bau- und Bodenbank AG in Frankfurt, which set the course for the future development of the corporate group.
