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Economy and Banking Sector of Germany

Financial Market Development

Financial Market Development
5.0 (max 7.0), 12th out of 138 countries
Banks' Soundness
5.3 (max 7.0), 53rd out of 138 countries

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).

Financial Market Development in Germany.

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


Soundness of banks is scored 5.3 bringing Germany into the 53rd place.

Soundness of Banks in Germany.

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

Further Information

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 1.

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
individuals
partnerships
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
Maximum Protected Amount
100,000 EUR
Temporary High Balance
500,000 EUR
Paid In Currency
EUR

Table 1. 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 (Feb 2019, EUR)
0.29 %  (Jan 2019: 0.28 %)
In February 2019, 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 0.29% which was below the Euro Area average (0.32%).
Deposit Rates in Germany.

Chart 3. Deposit Rates in Germany. Source: ECB.

Further Information

Banking Supervision

Deutsche Bundesbank

Banking Sector Structure

Number of Banks
1595
Consolidated Assets (2017)
6,864.07 bln EUR  (-3.10%)
Recent Changes (2018)
new banks: 9, closed banks: 49

Currently there are 1595 credit institutions operating in Germany.

In 2017 consolidated banking assets in Germany were 6,864.07 bln EUR. The consolidated banking assets' evolution is shown at Chart 4 below.

Consolidated banking assets in Germany.

Chart 4. Consolidated banking assets in Germany.

Recent structural changes (2013 - 2018) of the banking sector of Germany are summarised in Table 2.

201320142015201620172018
Number of Opened Banks585469
Number of Closed Banks274039757349

Table 2. Recent structural changes in the banking sector of Germany.

The list of the most recently opened banks in Germany is provided in Table 3.

NameStart Date
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 3. The most recently opened banks in Germany.

All the credit institutions operating in Germany can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks165
Branches of foreign banks112
Central banks1
Cooperative banks882
Landesbanken8
Mortgage banks7
Private banks (Bankhäuser)17
Private building and loan associations (Private Bausparkassen)11
Public sector building and loan associations (Landesbausparkassen)8
Savings banks (Sparkassen)384

Table 4. Number of banks by category in Germany.

There are 112 branches of foreign banks from 25 different countries in Germany. Table 5 shows 10 countries having the biggest number of branches in Germany.

Country of OriginNumber of Branches
 France17
 United Kingdom16
 Netherlands14
 Austria12
 Ireland6
 China5
 Sweden5
 Luxembourg5
 Italy4
 Denmark3

Table 5. Number of branches of foreign banks in Germany grouped by country of origin.