Germany has reportedly devised a two-pronged approach to boost to its banking system, after creating an off-balance sheet investment vehicle to manage the sub-prime assets of a state-owned lender, and launching a new trading platform to improve credit market transparency.

Local news weekly Focus reports the state is preparing a structured investment vehicle to consolidate the loans of WestLB, the lender owned by the state of North-Rhine Westphalia and two regional savings-bank associations.