The chances of widespread restructuring in Germany’s Landesbank sector rose on Tuesday as European competition authorities formally approved the country’s €500bn bank bail-out plan.

BayernLB and WestLB are set to be two of the banks to make use of the package to restructure their businesses. If two of the biggest Landesbanken get German government help, it is expected to stimulate consolidation for the sector, where many banks have been criticised for their weak business models.