German Siemens says it will create its own bank

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The German industrial group Siemens said Tuesday that it had obtained a license to create its own bank, which would offer financing to clients and manage investments of Siemens' funds.

"The new bank will not offer products for private individuals," a statement said, meaning the group would not follow the lead of auto manufacturers that provide financing and leasing options to the public.

"Financing solutions have become increasingly important for sales activities, particularly since the onset of the financial and economic crisis," the head of Siemens' financial services, Roland Chalons-Browne, said.

"With our own bank, we can provide loans for project and investment financing in Germany and, thus, support sales financing over the long term."

The bank will be headquartered in Munich, southern Germany, and "will also increase the flexibility of Siemens' internal financing operations and optimise risk management," the group added.

© 2010 AFP

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