7.11.2006 Official Journal of the European Union L 307/81 COMMISSION DECISION of 20 October 2004 on State Aid implemented by Germany for Bayerische Landesbank — Girozentrale (notified under document number C(2004) 3927) (Only the German text is authentic) (Text with EEA relevance) (2006/739/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on the Member State and other interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments, Whereas: L PROCEDURE (1)  The subject of these proceedings is the transfer of housing- promotion loans to Bayerische Landesbank — Girozentrale (BayernLB’) by the Land of Bavaria. There are a further six cases in which proceedings have been initiated against Germany in connection with transfers of assets to Land- esbanks, and in particular to Westdeutsche Landesbank Girozentrale (‘WestLB’). (2) By letter of 12 January 1993, the Commission asked Germany for information on a DEM 4 billion capital increase for WestLB resulting from the incorporation of the housing organisation Wohnungsbauforderanstalt (Wfa) and on similar increases in the own funds of the Landesbanks of other Lander. It asked which Landesbanks had benefited from a transfer of promotion-related assets and for information on the reasons for those transactions. (3) The German authorities replied by letters dated 16 March and 17 September 1993. The Commission requested further information by letters of 10 November and () O] C 81, 4.4.2003, p. 13. 13 December 1993, to which Germany replied by letter of 8 March 1994. (4) By letters of 31 May and 21 December 1994, the Bundesverband deutscher Banken e.V. (BdB’), an association representing private banks established in Germany, informed the Commission among other things that, under a law adopted on 23 July 1994, housing-promotion loans had been transferred to the liable equity capital of BayernLB. This increased the own funds at BayernLB'’s disposal and, in the BdB’s view, distorted competition in its favour since the parties had not agreed remuneration consistent with the market-economy investor principle. In its second letter, the BdB accordingly lodged a formal complaint and called on the Commission to initiate proceedings against Germany under Article 93(2) of the EC Treaty (now Article 88(2)). (5) The complaint also related to similar transfers of assets to Westdeutsche Landesbank, Norddeutsche Landesbank, Landesbank Schleswig-Holstein, Hamburger Landesbank and Landesbank Berlin. In February and March 1995 and December 1996 several banks associated themselves individually with the complaint lodged by the BdB. (6) By letters of 6 August 1997 and 30 July 1998, the BdB informed the Commission of two further transfers of assets, to Landesbank Schleswig-Holstein in Schleswig-Holstein and Landesbank Hessen-Thiiringen in Hessen. (7)  The Commission first examined the transfer of assets to Westdeutsche Landesbank (‘WestLB’) but announced that it would review the transfers to the other banks in the light of the findings in that case (%) . It finally adopted a decision on the WestLB case in 1999, concluding that there was a state aid component equal to the difference between the () O] C 140, 5.5.1998, p. 9 (opening decision).