KfW, the German state development agency, plans to issue securitisations worth between €10bn ($8.6bn) and €12bn in 2002 as part of its financing strategy for German businesses.

In 2001, KfW securitised loans to small and medium enterprises (SMEs) worth €2.7bn. Securitisation allows KfW to transfer the risk of the loans to the capital markets, giving credit institutions more scope to extend new loans. KfW also securitised housing construction loans worth €2.5bn.