[3][4] On 1 January 1999, Landesbank Baden-Württemberg (LBBW) was formed through the merger of SüdwestLB, Landesgirokasse, and the commercial banking business of L-Bank.

On 1 August 2005, Baden Württembergische Bank (BW-Bank) was incorporated into LBBW as a legally dependent institution under public law.

[8] Similar to other public lenders, it opted for support from its regional state owner instead of drawing on help from SoFFin, the federal government's bail-out scheme.

[9] By 2009, the European Commission approved a restructuring plan which had the institution focus on its core regional banking businesses, curtail capital market and proprietary trading activities and shrink its balance sheet.

[13] In 2015, an LBBW subsidiary in Switzerland agreed with the U.S. Department of Justice to pay a penalty of $34,000 to avoid possible prosecution for helping U.S. account holders conceal assets from the Internal Revenue Service and evade taxes.