Germany Finance Diversity as an advantage and strength of the financial system: The German financial center fits perfectly with the decentralized, medium-sized economic structure and German federalism – as shown by the study „Germany as a Financial Center and Cornerstone of the European Financial System“. The structures of the economy and the banking sector show great similarity.
Germany’s financial center generates EUR 122 billion per year, employs 1.1 million people and is the largest financial sector in Europe in terms of employment. Compared with the rest of Europe, the German financial system is close to its customers and characterized by many players. The study examines in detail banks, insurance companies and stock exchanges in a European context. The financial center consists of several leading regional financial centers with different focuses. This matches the widely known structure of the German real economy, which is multifaceted, fast-growing, international and stable.
However, new challenges need to be mastered. A diverse economy has good opportunities to do so. Looking to the future, three core challenges can be identified for the German financial system: sustainable transformation, digital (r)evolution and, as cornerstones of the European financial system, the banking and capital markets union.
The study by Germany Finance and zeb.rolfes.schierenbeck.associates gmbh was conducted in cooperation with the Chair of Banking and Financial Services at the University of Hohenheim.
An abridged version of the study in English is available for download here: