The banking system of Germany Merchant companies

The banking system of Germany

Merchant companies

Merchant companies

Headquarters –

Existence –

Currency –

Private –

Cooperative -

Banking in Germany has a long history. In the 15th century South German merchant companies carried conversion, exchange, credit and other banking transactions.

Banking in Germany has a long history. In the 15th century South German merchant companies carried conversion, exchange, credit and other banking transactions.

The oldest bank still in existence in Germany, Berenberg Bank, was founded by Dutch brothers Hans and Paul Berenberg in 1590, and is still owned by the Berenberg family.

The oldest bank still in existence in Germany, Berenberg Bank, was founded by Dutch brothers Hans and Paul Berenberg in 1590, and is still owned by the Berenberg family.

Berenberg Bank

Now the German banking system is one of the most stable and well-organized systems in the world. The structure of the banking sector in Germany is represented by three major sectors:private,national and cooperative.

Now the German banking system is one of the most stable and well-organized systems in the world. The structure of the banking sector in Germany is represented by three major sectors:private,national and cooperative.

Euro is the official currency of Germany

Germany has a modern banking sector but is considered “over-banked,” as evidenced by ongoing consolidation and low profit margins. The country’s so-called “three-pillar" banking system is made up of private commercial banks, cooperative banks, and the public banks (savings banks or Sparkassen, and the regional state-owned banks, or Landesbanken).

• Germany has a modern banking sector but is considered “over-banked,” as evidenced by ongoing consolidation and low profit margins. The country’s so-called “three-pillar" banking system is made up of private commercial banks, cooperative banks, and the public banks (savings banks or Sparkassen, and the regional state-owned banks, or Landesbanken).

German banks’ profitability is increasingly under pressure given the very low interest rates, high cost structures and increasing compliance costs as a result of new regulation and supervision.

• German banks’ profitability is increasingly under pressure given the very low interest rates, high cost structures and increasing compliance costs as a result of new regulation and supervision.

Private banks control roughly 30% of the market, while publicly owned savings banks partially linked to state and local governments account for 50% of banking transactions, and cooperative banks make up the balance. All three types of banks offer a full range of services to their customers

• Private banks control roughly 30% of the market, while publicly owned savings banks partially linked to state and local governments account for 50% of banking transactions, and cooperative banks make up the balance. All three types of banks offer a full range of services to their customers

The private bank sector is dominated by Deutsche Bank and Commerzbank, with a balance sheet total of EUR1.3 billion and EUR462 billion respectively (2018 figures). In efforts to raise capital ratios in advance of new international guidelines (the Basel III agreement), both banks continue to shrink the size of their balance sheets.

• The private bank sector is dominated by Deutsche Bank and Commerzbank, with a balance sheet total of EUR1.3 billion and EUR462 billion respectively (2018 figures). In efforts to raise capital ratios in advance of new international guidelines (the Basel III agreement), both banks continue to shrink the size of their balance sheets.

At the end of 2011 in Germany are 2121 banks. The largest banks are Deutsche Bank and Commerzbank.

At the end of 2011 in Germany are 2121 banks. The largest banks are Deutsche Bank and Commerzbank.

The Deutsche Bundesbank is the central bank of the Federal Republic of Germany. It was founded in 1957. Bundesbank headquarters is in Frankfurt am Main.

The Deutsche Bundesbank is the central bank of the Federal Republic of Germany. It was founded in 1957. Bundesbank headquarters is in Frankfurt am Main.

Deutsche Bundesbank

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