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Banking Business in Germany: 5th revised edition is now available

I am happy to announce that the 5th revised edition of Banking Business in Germany is now available. You can order it at „Fachverlag Moderne Wirtschaft“ (34,50 EUR). It is also available as an E-Book at ciando (28,50 EUR).

Cover picture of "Banking Business in Germany", 5th revisededition

Banking Business in Germany, new 5th revised edition


“Banking Business in Germany” is again a joint project of the Association of Foreign Banks in Germany and PwC.

From the Preface, written by Thomas Schäfer, Minister of Finance of the State of Hessen:

Now in its fifth edition, „Banking Business in Germany“ presents the legal and economic frameworks for the banking sector in Germany.


With the European Central Bank and the Bundesbank located here, Frankfurt is a leading location for international monetary and currency policy. And since the Single Supervisory Mechanism (SSM) has been placed under the auspices of the European Central Bank in November 2014, the financial centre of Frankfurt as a whole has become even more valuable and attractive for foreign institutions. And so, together with the European Insurance and Occupational Pensions Authority (EIOPA) and the European Systemic Risk Board (ESRB), Frankfurt is not only the centre of European monetary policy, but has also become a centre for regulatory authorities and supervisory agencies that can boast a competitive regulatory environment.

Over the last few years, the main objective of regulatory efforts at international, European and national level has been the rebuilding of trust in the financial markets. The creation of a Capital Markets Union and the implementation of new European requirements for financial market products are just two of the changes we will have to adapt to. I believe that Frankfurt should contribute towards achieving a change of direction: after years with a focus on regulation, it is now time for the simplification and optimisation of framework conditions. If these challenges can be actively addressed, I am confident that Frankfurt will be able to successfully defend its market position among the competition provided by global financial centres.


We welcome all financial institutions coming to Germany and contributing to this financial market, thereby enabling customers to choose from a diverse range of financial products.

I hope you will enjoy reading this publication and I cordially welcome you to Germany.


Bank formation as a strategic decision for company success

-External Factors Influencing the Decision to Establish a Bank –

Industrial companies are thinking to establish their own bank or have established their own bank already. The motifs to found a bank can be totally different.

The range of existing bank products and services does not always correspond to the needs and requirements of the respective company. Through the acquisition of an own banking license, the company is able to develop new financing models for either internal or external purposes and can also create company specific products and services. Furthermore, companies with high refinancing needs may then obtain access to low interest ECB loans if applicable. Additionally, they get the possibility to place liquidity reserves and other cash assets profitably. Consequently, new value creation possibilities can be revealed through an own banking license.

The developments of the financial markets can also be a decisive factor for the decision of founding a bank.
Lately many banks were downgraded by the rating agencies, so that some companies might be anxious and that therefore the establishment of an own bank could contribute to the long-term protection of the company’s success.

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