German public bank

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German public banks form one of the three "pillars" of the German banking system,[1][2] alongside private banks represented by the Association of German Banks, and cooperative banks within the German Cooperative Financial Group.[3] Most of Germany’s public banks are members of the Sparkassen-Finanzgruppe.

Overview[edit]

Public banks in Germany are financial institutions typically held directly or indirectly by public sector entities such as the federal government, the states, administrative districts or cities. Not all these companies are fully publicly owned. They can also be defined as public because they provide services in the public interest.[4]

The public banks are represented through the Bundesverband Öffentlicher Banken Deutschlands (VÖB, Association of German Public Sector Banks), one of the leading associations in the German banking industry. The association counts 34 ordinary members, but the Landesbanken, as part of the Sparkassen-Finanzgruppe described below, are also members of this association.[5]

The typical public bank acts as a business development bank (Förderbank, Aufbaubank or Investitionsbank) or as an institution for the financing of international projects, infrastructure and exports. The best known representatives of this group are the KfW-Group, the NRW.Bank in North Rhine-Westphalia, the LfA Förderbank Bayern in Bavaria and the L-Bank, Staatsbank für Baden-Württemberg in Baden-Wuerttemberg.

The public development banks together manage assets of €880.9 billion. In total, 13,000 people work for the various institutions. (December 2010)[6]

The Sparkassen-Finanzgruppe ("German Savings Banks Financial Group") is the most important group of German public banks, with 431 savings banks using the Sparkasse brand,[7] 8 Landesbanken including the DekaBank using separate brands[8] and 10 real-estate financing banks using the LBS brand.[9] The Deutscher Sparkassen- und Giroverband (DSGV, "German Savings Banks and Clearing Association") represents the interests of the Sparkassen-Finanzgruppe on a national and international level concerning law and the financial services industry. It also coordinates, promotes and harmonises the interests of Sparkassen.[10]

According to the OECD, the German public banking system had a 40% share of total banking assets in Germany.[11] This shows the significant role of this group of banks in Germany.

See also[edit]

External links[edit]

References[edit]

  1. ^ Was Banken leisten[1] Archived 2011-09-29 at the Wayback Machine publisher: Bundesverband deutscher Banken, Berlin 2010, P. 15.; accessed: 13.06.2011
  2. ^ Felix Hüfner: The German Banking System: Lessons from the financial crisis, Economic Department Working Papers No.788, OECD 2010, P.8. OECD Workingpapers; accessed: 13.06.2011
  3. ^ Felix Hüfner: The German Banking System: Lessons from the financial crisis, Economic Department Working Papers No.788, OECD 2010, P.9. OECD Workingpapers; accessed: 13.06.2011
  4. ^ VÖB-Website ; accessed: 13.06.2011
  5. ^ VÖB-Website - Members ; accessed: 13.06.2011
  6. ^ Landesbanken in 2011 Archived 2012-03-25 at the Wayback Machine ; accessed: 13.06.2011
  7. ^ DSGV-Website-Organisation-Sparkassen; accessed: 13.06.2011
  8. ^ DSGV-Website-Organisation-Landesbanken; accessed: 13.06.2011
  9. ^ [2] ; accessed: 13.06.2011
  10. ^ Staff, Sparkassen, The Deutsche Sparkassen- und Giroverband, archived from the original on 2008-11-19, retrieved 2008-09-21
  11. ^ Felix Hüfner: The German Banking System: Lessons from the financial crisis, Economic Department Working Papers No.788, OECD, P.7. [3] ; accessed: 13.06.2011