KfW to Restructure Support Operations Domestically and Internationally
Germany's KfW development bank announced plans to restructure its support operations across three key dimensions in 2026: domestic promotion, international business, and internal bank processes.
Frankfurt am Main. Germany's state-owned development bank KfW announced its intention to significantly restructure its support operations starting in 2026, aiming to strengthen Germany's economy and innovation capacity. The reforms will focus on three core areas: enhancing domestic support measures, developing international business, and streamlining the bank's internal processes.
KfW CEO Stefan Wintels stated at the bank's annual kick-off press conference that the institution is adapting to changed geopolitical conditions. "We will do everything we can to help 'Made in Germany' make a strong comeback," Wintels said. Key priorities include investments in Germany's sustainable energy and heat supply, support for the country's innovation system and competitiveness, and the creation of reliable frameworks for export, innovation, and growth worldwide.
Domestically, the restructuring centers on the Deutschlandfonds initiative launched in December 2025. This fund provides a new, more market-oriented financing framework for crucial future sectors, such as energy production and technological development. Plans under the fund include credit risk transfers, new support loans for energy companies, and additional financing for startups and growth companies in deep tech, biotech, and defense industries.
In its international business, KfW aims to address global challenges by enhancing its operations in developing and emerging economies. KfW Entwicklungsbank (the development bank) will focus more intensely on German and European interests by promoting geostrategic infrastructure and supporting German exports. State funds will be used more efficiently, particularly to aid the poorest and most fragile countries. KfW's subsidiary, DEG, which supports private companies in developing countries, also plans a significant expansion of its activities.
Furthermore, KfW is overhauling its domestic housing support programs by clarifying and consolidating them into two main initiatives: one for new construction and another for existing properties. The bank will also improve its internal processes and digitalization to enhance customer experience and the effectiveness of its support.