According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Germany is scored 5.0 out of maximum 7.0 and ranked 12th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.9 (29th place).
Chart 1. Financial Market Development in Germany. Source: WEF.
Soundness of banks is scored 5.3 bringing Germany into the 53rd place.
Chart 2. Soundness of Banks in Germany. Source: WEF.
Banks in Germany are mainly focused on the following areas:
Currently there are 1566 credit institutions operating in Germany.
In 2018 consolidated banking assets in Germany were 7,103.61 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Germany.
Recent structural changes (2013 - 2018) of the banking sector of Germany are summarised in Table 1.
|Number of Opened Banks||5||8||5||4||6||9|
|Number of Closed Banks||27||40||39||75||73||50|
Table 1. Recent structural changes in the banking sector of Germany.
The list of the most recently opened banks in Germany is provided in Table 2.
|Standard Chartered Bank AG (new)||December 2018|
|Lloyds Bank plc Niederlassung Berlin (new)||December 2018|
|Barclays Bank Ireland PLC Frankfurt Branch (new)||December 2018|
|SMBC Bank EU AG (new)||November 2018|
|Woori Bank Europe GmbH (new)||October 2018|
|Middle East Bank, Munich Branch (new)||July 2018|
|easybank AG Niederlassung Deutschland (closed)||May 2018|
|Citibank Europe plc, Germany Branch (new)||April 2018|
|HOIST Finance AB (publ), Niederlassung Deutschland (new)||January 2018|
|CAIXABANK S.A. Zweigniederlassung Deutschland (new)||December 2017|
Table 2. The most recently opened banks in Germany.
All the credit institutions operating in Germany can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||111|
|Private banks (Bankhäuser)||18|
|Private building and loan associations (Private Bausparkassen)||11|
|Public sector building and loan associations (Landesbausparkassen)||8|
|Savings banks (Sparkassen)||379|
There are 111 branches of foreign banks from 25 different countries in Germany. Table 4 shows 10 countries having the biggest number of branches in Germany.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Germany are summarised in Table 5.
Table 5. Deposit guarantee scheme in Germany.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Germany is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Germany. Source: ECB.