A German court has indicated that Deutsche Bank AG (DB.US), Italy's UniCredit Bank, and Germany's DZ Bank may prevail in their dispute with the country's industry regulator, potentially recovering portions of the €2.3 billion (approximately $2.7 billion) in reconstruction funds they were compelled to pay following the 2008 financial crisis.

During a hearing on Tuesday, judges stated that the Frankfurt Administrative Court may order Germany's Federal Financial Supervisory Authority (BaFin) to reimburse the lenders, as such special taxation measures comply with constitutional provisions. The judges noted that the court's assessment remains preliminary and could change during the review process.

These cases form part of a broader dispute between Germany's financial industry and the government regarding the handling of funds generated from bank taxation. Since the European Union has established EU-wide solutions, these funds are no longer required for their original purpose.

Hundreds of lending institutions have requested BaFin to return these payments, but the government plans to transfer the funds to a facility designed to support small and medium-sized enterprises.