The role of the banks in Germany at a glance

Banks are the beating heart of the German economy

Banks help ensure that capital is available where it is needed most. They drive investment, innovation and progress. Whether serving businesses, associations or public-sector clients, employees, pensioners, the self-employed or students, banks support their customers and help them achieve their financial goals.

In doing so, banks help drive economic growth and support employment. They also play a key role in making the economy and society more resilient and sustainable. The investment required is enormous and can only be financed with the support of a strong and competitive banking sector.

Banks create value and jobs: 

• Germany's banking sector generates 88 billion euros in gross value added each year. 
• More than 540,000 people work in the German banking industry.

Banks finance the economy:

• Banks support businesses in Germany with loans worth 1.1 trillion euros.
• More than 78 percent of corporate debt financing comes from bank loans.
• Private banks support almost 90 percent of German export business.
• The three largest private banks support more than 10,000 start-ups.

Banks provide access to the capital markets:

• 324 billion euros is the total volume of corporate bonds that banks help German companies issue.
• 2.5 trillion euros is the combined market capitalisation of companies listed on German stock exchanges with the support of private banks.
• 30.7 million securities accounts are held by households at private banks.
• 2.8 trillion euros is the volume of securities held in custody at banks.

Banks are with us every day

Even if we do not always realise it, banks play an important role in our daily lives. We rely on banking services every day – whether we are shopping at the supermarket, paying in a restaurant, shopping online or booking a holiday. With a smartphone in their pocket, many people now have access to their bank wherever they are. Customers open their banking apps or log in to their online banking accounts eight times a day, on average. 84 percent of people now conduct most of their banking online. All these everyday activities that we often take for granted ultimately depend on a bank account and a payment system that is efficient, secure and convenient.

Banks also help their customers build wealth. They finance home ownership and provide access to the capital markets, which play an important role in retirement planning and long-term wealth creation. Compared with many other European countries, the cost of everyday banking services in Germany is relatively low. At the same time, Germany's deposit protection schemes offer a unique dual layer of protection: statutory protection up to 100,000 euros per customer and bank, complemented by voluntary protection of at least 750,000 euros and up to 5 million euros for private customers. Together, these schemes provide a safety net that is unique worldwide among private banks.

Banks provide account and payment services:

• There are 110 million current accounts in Germany.
• 7.6 billion bank transfers take place every year.
• There are 196 million bank cards in circulation in Germany
• More than 36 million payments are made with cards within the country each day.
• Germany has a total of 50,000 ATMs.
• Every day, 3.7 million cash withdrawals are made from those ATMs.

Banks support customers as they grow their wealth:

1.3 trillion euros have been issued as construction loans to private households. There are 14.1 million shareholders in Germany. Banks are part of society

Banks are not only important partners for their customers, but they also create value for society as a whole. For example, they support foundations and other charitable organisations in performing the important work they do. Many banks also promote financial literacy through their own initiatives and are actively involved in charitable and community projects.

• Foundations earn 49% of their revenue from capital investments, which are usually managed by banks.
• Banks contribute to society in many ways, including by promoting financial literacy through educational materials and workshops for teachers.

Sources: Federal Statistical Office of Germany (Destatis), Deutsche Bundesbank statistics, European Central Bank (ECB), German Share Institute (DAI), AGV Banken and ZEW – Leibniz Centre for European Economic Research.