In the 2016 financial year, the Supervisory Board performed the tasks incumbent on it by law and in accordance with the articles of association. In particular, it monitored the management of the company and provided advice to the Management Board in matters relating to corporate governance. In addition to strategic matters relating to the Bank’s focus, the Supervisory Board continually obtained information on the Bank’s economic and financial development, as well as on the development of individual business segments. The Supervisory Board was provided with explanatory information on any deviations from the plan in the course of business.

In the 2016 reporting year, the Management Board provided the Supervisory Board with regular, timely and comprehensive information on the Bank’s business policy and other fundamental issues relating to corporate governance and planning, financial development, operating performance and the Bank’s risk, liquidity and capital management, as well as on major legal disputes and transactions and on events of fundamental significance to the Bank. The Supervisory Board was involved in any decisions that were of key significance to the Bank. The Management Board also provided the Chairperson of the Supervisory Board and the Chairpersons of both the Risk and Audit Committees with information on key issues and upcoming decisions between the planned meetings. Where resolutions had to be passed between meetings, the Supervisory Board passed these resolutions using written proceedings.

In the 2016 financial year, the Bank’s focus was shaped – in an environment characterised by continued difficult market conditions, the ongoing crisis on the shipping markets and the development of the US dollar – by the final EU decision of May 2016. The EU decision approving the replenishment of the guarantee from €7 billion to €10 billion in 2013 allows the Bank to transfer part of its troubled assets to the sphere of the majority shareholders, the federal states of Hamburg and Schleswig-Holstein, and to sell further non-performing loans itself on the market. At the same time, the Bank was relieved of part of the guarantee fees. These relief meas­ures are tied to the condition that the federal states give up the majority of their shares in the Bank by 28 February 2018. The Supervisory Board was closely involved in both issues. It sought ongoing information on the status of the key milestones on the path towards privatisation and on the sale of loan portfolios and – where necessary – passed corresponding resolutions. The Supervisory Board sought legal advice within this context where necessary.