CRZBY Commerzbank Ag (PK)

By Noemie Bisserbe

PARIS--French insurer AXA SA (CS.FR) said Thursday it had signed a financing agreement with German lender Commerzbank AG (CBK.XE) to help fund medium-sized companies in Germany, Switzerland and Austria.

The deal will allow Commerzbank to issue loans, which will in turn be sold to the French insurer, the two companies said in a joint statement.

The agreement highlights how banks in Europe are increasingly moving the loans they issue off their balance sheet to meet new stringent banking regulation.

AXA last year signed a similar agreement with French lender Societe Generale SA (GLE.FR).

Write to Noemie Bisserbe at noemie.bisserbe@dowjones.com

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