The €17.3bn ($23.3bn) rescue of Sachsen LB was the second bail-out in three weeks of a German bank with structured credit market exposure and has raised fresh questions about the country's banking system.

The German savings banks association assumed the whole of Sachsen LB's €17.3bn credit facility to a special investment fund, or conduit, that the Landesbank in the state of Saxony had supported and managed.