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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 Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

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 Participantsall credit institutions operating in Germany, branches of non-EEA banks, branches of German banks abroad
Scheme Exemptionsbranches of EEA-banks (covered by their home countries)
Covered Accountsall deposit accounts (deposits on current accounts and savings accounts, overnight money or time deposits, registered savings bonds, and similar)
Covered CurrenciesEU currencies
Maximum Protected Amount100 000 EUR
Paid In CurrencyEUR

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.

EU currencies are all official currencies of EU Member States.

So, only the deposits made with German banks in the following currencies are covered by the deposit guarantee scheme of Germany

 EUREuro
 BGNBulgarian lev
 HRKCroatian kuna
 CZKCzech koruna
 DKKDanish krone
 HUFHungarian forint
 PLNPolish złoty
 RONRomanian new leu
 SEKSwedish krona/kronor
 GBPPound sterling

It should be also noted that deposits made in non-EU currencies (for example, CHF, USD and JPY) are not covered by the German deposit guarantee scheme.

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 (Jan 2018, EUR)
0.19 %  (Dec 2017: 0.13 %)
In January 2018, 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 0.19% which was below the Euro Area average (0.37%).
Deposit Rates in Germany.

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

Further Information

Banking Supervision

 Deutsche Bundesbank

Banking Sector Structure

Number of Banks
1597
Consolidated Assets (2017)
6 864.07 bln EUR  (-3.10%)
Recent Changes (2017)
new banks: 6, closed banks: 73

Currently there are 1597 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 - 2017) of the banking sector of Germany are summarised in Table 2.

20132014201520162017
Number of Opened Banks58546
Number of Closed Banks2740397573

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
 CAIXABANK S.A. Zweigniederlassung Deutschland (new)December 2017
 Adyen BV - German Branch (new)October 2017
 HOIST Kredit AB (publ), Niederlassung Deutschland (closed)July 2017
 National Westminster Bank Plc Niederlassung Deutschland (new)July 2017
 VZ Depotbank Deutschland AG (new)June 2017
 Kommunalkredit Austria AG Zweigstelle Deutschland (new)January 2017
 Hyundai Capital Bank Europe GmbH (new)October 2016
 N26 Bank GmbH (new)July 2016
 solarisBank AG (new)April 2016
 EIS Einlagensicherungsbank GmbH (new)February 2016
 

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
Banks164
Branches of foreign banks113
Central banks1
Cooperative banks883
Landesbanken8
Mortgage banks6
Private banks (Bankhäuser)17
Private building and loan associations (Private Bausparkassen)12
Public sector building and loan associations (Landesbausparkassen)8
Savings banks (Sparkassen)385

Table 4. Number of banks by category in Germany.

There are 113 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
 United Kingdom19
 France17
 Netherlands14
 Austria13
 China5
 Sweden5
 Italy5
 Ireland4
 Luxembourg3
 Belgium3

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