Grown with Germany

The sixties are a time of new beginnings – for Germany and for KfW. Though still young, the Federal Republic of Germany is beginning to flex its economic muscles. The international community therefore expects it to assume increasing responsibility for development aid. In 1961 KfW is legally mandated to perform development cooperation and commercial project financing.

To the 1960s

The global debt crisis is a heavy blow to development policy. The understanding of development problems is changing, as are the approaches selected to address them. Capital assistance has become Financial Cooperation. Refinancing of KfW also receives a makeover. The growing internationalisation of the capital markets opens up whole new refinancing possibilities for KfW.

To the 1980s

The new millennium also marks the dawn of a new era for KfW. Never before in its entire history has the promotional bank undergone such institutional change. The 'Kreditanstalt für Wiederaufbau' becomes KfW Group.

To the 2000s

Right at the start of the new decade, the years 2020 to 2022 will go down in KfW history as the "Corona years". At the same time, KfW continues to develop into a digital transformation and promotional bank for a climate-neutral future.

To the 2020s

KfW is born

Discussions continue for about a year. Then, in the summer of 1948, a compromise is reached – the establishment of a central reconstruction loan corporation. The ball is now in the court of the German administration, which has to work out the details. On 18 November 1948 the Law Concerning KfW enters into force. On 16 December KfW begins making preparations, before embarking on its actual business operations on 2 January 1949. Right from the start KfW is more than just a 'pipeline' for foreign aid monies. It is the first bank incorporated under public law by German legislators after the war, with equity of EUR 511,000.

First steps on the capital market

From the beginning it operates as a bank – applying professional banking standards. And in 1949 it becomes the first bank in Germany after the war to attempt to place a bond on the emerging German capital market. Although KfW's first steps on the capital market reap few rewards, this does not put a stop to the bank's successfull work. This is because the main source of funding at that time – and for many more years to come – was the Marshall Plan. This facility formed the basis for the ERP Special Fund, which was created in 1953. To this day the Fund remains a linchpin of economic promotion.