Banking in Germany's theme is one that has captured the attention of many people around the world. With its relevance in modern society, Banking in Germany has been the subject of debates, discussions and research. From its impact on daily life to its influence on culture and politics, Banking in Germany has proven to be a topic of great interest and diversity. As opinions and perspectives on Banking in Germany continue to evolve, it is important to explore and understand all facets of this topic in order to form an informed opinion. In this article, we will dive into the world of Banking in Germany to examine its different aspects and discover its importance in today's world.
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Banking in Germany is a highly leveraged industry, as its average leverage ratio (assets divided by net worth) as of 11 October 2008 is 52 to 1 (while, in comparison, that of France is 28 to 1 and that of the United Kingdom is 24 to 1); its short-term liabilities are equal to 60% of the German GDP or 167% of its national debt.
From the 15th century, banking families such as Fugger, Welser and Hochstetter were international mercantile bankers and venture capitalists. The oldest bank still in existence in Germany, Berenberg Bank, was founded by Dutch brothers Hans and Paul Berenberg in 1590, is still owned by the Berenberg family, and is the world's oldest or second oldest bank, depending on the exact definition.
Germany has universal banking. The private customer mostly has to choose between three kinds of banks (German "three pillar system"):
Private banks are found mostly in the cities, whereas cooperative and savings banks are almost everywhere and are often exclusive[clarification needed] in smaller villages.
ATMs (Geldautomaten) are on nearly every corner. However, customers mostly have to use their bank's ATM with their debit card if they do not want to pay a fee. Cash Group offers free ATMs through the group. Using a credit card (Visa/MasterCard/Diners Club/American Express) from a German bank at any German ATM generates a fee of about 3%. Most people prefer to use their EC/Maestro debit card. Many physical payments are still made in cash, but increasingly, Germans are using their EC/Maestro. Online payments are done mostly either with direct debit (Lastschrift) or with a credit card.
Most banks offer a free main account (Girokonto) as long as the customer deposits a minimum amount regularly (over €1000 in income each month).
Media related to Banking in Germany at Wikimedia Commons