The Deutsche Bank is leader of the German Banking market, with net assets estimated to be at the 1,000 billion Euros mark as the second biggest bank in Germany is the Hypovereinsbank. The public sector banks have the largest market share in terms of assets, with 45 percent market share, and 30 percent of the market share belongs to the private sector, commercial banks account for 28 percent market share. There is an estimated 2147 credit institutions established in Germany.
There are four types of banks; the biggest of the four are the public sector banks, savings banks, credit cooperatives and the Post bank. There are dozens of mortgage banks. German securities are traded on the Frankfurt Stock Exchange. There are over 39,000 banking offices throughout Germany. There is a state owned bank KfW, that’s helps finance small-medium sized enterprises in Germany, as well provides specialized lines of credits to exporters to less developed areas of Germany.
The standard method of payment is the Eurocheque, this is similar to the certified cheque Canadian Commercial banks offer, by making a Eurocheque payment the bank is guaranteeing payment for you up to a certain amount. Other ways of making payments in Germany are a standing order which you have regular reoccurring payments at a set sum other forms of payments are direct debits which can also be used when making reoccurring payment that vary on size, such as telephone, TV bills.
You can also establish lines of credits through the German banks, German banks offer an extensive line of credit system, giving you up to three times as much as you make annually. The Finance Ministry of Germany offers such bonds, bills, two year notes, five year notes and numerous of bonds that can be purchased. There are numerous ways to finance a project in Germany. Whether it be through loans or bond being issued. There is a financing system of leveraged and acquisition financing, which involves, institutional buyouts or public to private mergers. Also, Asset based and project financing, asset based financing includes trade financing, leasing and receivables financing, and project financing will help with any consumer and inventory funding. There are some political risks to be concerned about as well when wanting to bank in Germany.
Political Risk in Germany is less worrisome then in China. Germany has been a country virtually unharmed from terrorist attacks, though with the open border with its western European neighbors, this can allow terrorists, terrorist cells, to commute in and out the country free from identification. Violent attacks in Germany are seldom heard of. Demonstrations are held yearly all throughout the major populous areas of Germany, with little or no risk associated, these demonstrations needed to be approved by the regional/federal governments, the unauthorized demonstrations may cause little problems. Such unauthorized demonstrations are more prone to getting violent.