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Economy and Banking Sector of Germany

Financial System Development

Financial System
79.1, 25th out of 144 countries
Banks' Soundness
69.9, 64th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Germany is scored 79.1 out of maximum 100.0 and ranked 25th out of 144 analysed economies.

Financial Market Development in Germany.

Chart 1. Financial Market Development in Germany. Source: WEF.

Soundness of banks is scored 5.2 bringing Germany into the 64th place.

Soundness of Banks in Germany.

Chart 2. Soundness of Banks in Germany. Source: WEF.

Further Information

Banking Focus

Banks in Germany are mainly focused on the following areas:

  • cooperative retail banking
  • retail banking
  • corporate banking

Banking Supervision

Deutsche Bundesbank

Banking Sector Structure

Number of Banks
Consolidated Assets (2019)
6,938.07 bln EUR  (-2.33%)
Recent Changes (2018)
new banks: 9, closed banks: 50

Currently there are 1541 credit institutions operating in Germany.

In 2019 consolidated banking assets in Germany were 6,938.07 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.

Consolidated banking assets in Germany.

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 Banks585469
Number of Closed Banks274039757350

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.

All the credit institutions operating in Germany can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks115
Central banks1
Cooperative banks839
Mortgage banks6
Private banks (Bankhäuser)18
Private building and loan associations (Private Bausparkassen)10
Public sector building and loan associations (Landesbausparkassen)8
Savings banks (Sparkassen)376

Table 3. Number of banks by category in Germany.

There are 115 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 OriginNumber of Branches
FR France19
NL Netherlands15
GB United Kingdom12
AT Austria12
IE Ireland7
LU Luxembourg6
SE Sweden6
CN China5
IR Iran, Islamic Republic of4
IT Italy4

Table 4. Number of branches of foreign banks in Germany grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Germany are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Temporary High Balance
500,000 EUR
Scheme Participants
all credit institutions operating in Germany
branches of non-EEA banks
branches of German banks abroad
Scheme Exemptions
branches of EEA-banks (covered by their home countries)
Eligible Depositors
companies of any size
Non-Eligible Depositors
credit institutions
financial institutions
investment firms
public authorities
Covered Accounts
all deposit accounts, including
  • current accounts
  • savings accounts
  • term deposit accounts
  • overnight money or time deposits
  • registered savings bonds
  • and similar
Covered Currencies
all currencies, namely
  • EUR (Euro)
  • foreign currencies
Paid In Currency

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.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Germany is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
0.12 %  (Feb 2020: 0.15 %)
In March 2020, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.12% which was below the Euro Area average (0.31%).
Deposit Rates in Germany.

Chart 4. Deposit Rates in Germany. Source: ECB.

Further Information