Growing competition in the credit market

Hamburgische Landesbank, which usually finances hotels and logistics centres, has officially begun operating in Poland and has already invested in  a retail centre and office project. Its main shareholders are the city of Hamburg and Landesbank Schleswig-Holstein. "We want to give credit to big projects", declared Robert Sztemberg, Head of the bank's Polish representation. EURO 15 million will be allocated to direct investments and EURO 10 mln for  consortium involvement. The bank is assuming nothing about the size of the credit portfolio after its first year in Poland but is to analyse its achievements in the country after three years. Despite any success that the bank might have, it is unlikely to open a branch in Warsaw, as operating costs would be too high. Not so conservative Given that HLB is not a mortgage bank and its real estate appraisals are not so closely standardised, market prices will not be the sole influence on how it operates: &quo