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The Commission approved the capital injection and a risk shield that the Freistaat Bayern intends to grant to BayernLB.
BayernLB obtains a core capital increase of €10 billion through one of its owners, the Freistaat Bayern. This will reduce the shareholding of the savings banks significantly. The capital increase will be implemented in several instalments.
As a second measure the Freistaat Bayern provides a risk shield for part of the ABS portfolio of BayernLB for an amount of €4.8 billion. The objective of this risk shield is to avoid further write downs on the ABS portfolio which would weaken the capital position of BayernLB.