On February 26, 1991 – less than five months after Germany's reunification – DKD launches activities under the name "Hypothekenbank Berlin AG". The focus is placed on municipal lending from the outset. The Bank grants loans to public-sector institutions and public banks in Germany. Real estate financing forms the second pillar of the Bank's activities.

 
In September 1995, Paris-based "Crédit Local de France (CLF)", one of the world's leading public finance institutions, acquires a 50.5% majority interest in the Bank. This acquisition represents an excellent opportunity for the future of Hypothekenbank Berlin AG, which changes its name to "CLF Hypothekenbank Berlin AG".

At the beginning of 1997, the French bank Crédit Local de France (CLF) becomes a part of the Dexia Group. As it integrates into the Dexia Group, the Bank again changes its name: "Dexia Hypothekenbank Berlin AG". During the same year, Dexia Hypothekenbank Berlin AG issues its first Jumbo Pfandbrief under the new name.

In 1998, the Bank's business model is redefined. On December 16, 1997, the shareholders resolve to discontinue the new mortgage loans business, and to focus on municipal lending as the sole business segment. The Bank is among the largest issuing houses on the Berlin Stock Exchange. Standard & Poor's issues Dexia Hypothekenbank Berlin AG's public Pfandbriefe a AAA rating, which it has maintained every year since then.

On July 1, 2000, Dexia Hypothekenbank Berlin AG opens a branch office in Frankfurt am Main. The core focus of activity there is on the municipal lending business in the Federal Republic of Germany. This new activity enables Dexia Hypothekenbank Berlin AG to offer a broad product range to cities and municipalities.

In the first half of 2000, the Dexia Group undergoes a reorganization. The majority interest in Dexia Hypothekenbank Berlin AG is transferred to "Dexia Public Finance Bank", which changes its name to "Dexia Crédit Local" on March 8, 2001.

On October 1, 2003, Paris-based Dexia Crédit Local acquires the remaining 49.52% interest held by the Dr. Schuppli Group, making Dexia Hypothekenbank Berlin AG a wholly owned subsidiary of Dexia Crédit Local.

After reducing its mortgage portfolio to a minimum at the end of 2005, Dexia Hypothekenbank Berlin AG places its sole focus on expanding its public financing business. It does so by leveraging the new business opportunities created under the German Pfandbrief Act, such as the purchase of receivables from public-sector entities, PPP/PFI project financing and financing semi-public utilities enterprises.
In order to better reflect its business focus, Dexia Hypothekenbank Berlin AG changes its name to Dexia Kommunalbank Deutschland AG, which is entered into the commercial register in Berlin on February 8, 2006.

With effect from July 1, 2009, Dexia Kommunalbank Deutschland realigns its strategy, discontinuing the bulk of its primary municipal lending business and its semi-public enterprises segment. Going forward, in line with the Dexia Group's strategy, Dexia Kommunalbank Deutschland will concentrate primarily on its municipal secondary market business in Germany and on its cover-fund-eligible public finance business internationally, in cooperation with the Dexia Group.