Whoever wins the election on Sunday would not fund any more bailouts of fellow European countries as seen by many Germans.

Germany's own banking system had increased the need for reforms which would be very hard for any new government to accomplish. Germany had already received state bailouts and is now confronted with fresh challenges.

The publicly-owned Landesbanken played a hallowed role as low cost lenders to local projects. Landesbanken was established in the 19th century with the aim to promote regional development.

A combined asset of a trillion Euros was accounted for 12% of the country's total banking assets. The said asset was 3% of Europe's banking assets as measured by the European Central Bank (ECB).

The Euro Zone's steps towards banking union had triggered the toughest banks stress tests. The new global regulations impose higher capital demands specifically hard for low-margin banks like the Landesbanken to achieve.

Landesbanken's core business was threatened by increasing competition from international banks like BNP Paribas of France.