"This paper will provide economic and structural reasons for the upcoming of non and sub performing real estate loans in Germany and will compare the German market to the U.S.- and other relevant NPL-markets. As German banks are currently facing the new regulations of Basel II as well as strong...

As German banks are currently facing the new regulations of Basel II as well as strong global competition, non and sub performing loans have risen to a subject of high interest in German banks. The German press pays high attention to the topic and the constantly growing non performing loan...

Purpose – The German banking sector has recently been facing high real estate loan default rates resulting in the accumulation of a high volume of distressed real estate debt in the banks' balance sheets. As a consequence, German banks are confronted with the workout of their non‐ and...