Banking Business in Germany4th revised edition

Preface

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

For banks and the financial industry as a whole, the
Rhine-Main economic region and the city of Frankfurt
in particular are a commercial hub of great
international importance.

With the European Central Bank and the Bundesbank
located here, Frankfurt is a leading location for international
monetary and currency policy. Together with the European Insurance
and Occupational Pensions Authority (EIOPA) and the European Systemic Risk
Board (ESRB), having joined in early 2011, Frankfurt can boast a competitive
regulatory environment.

And with Deutsche Börse Group, the Rhine-Main economic region continues to
be home to one of the world’s leading stock exchange organisations.

221 credit institutions, with more than three quarters of them being foreign
institutions, have chosen the financial centre of Frankfurt as their base.

Despite the financial crisis and the consolidation in its wake, the still high
number of foreign banks (156 banks in 2012) demonstrates continued interest
in being represented in this financial centre, in the benefit of being in close
proximity to other key players and that Frankfurt has earned an excellent
worldwide reputation.

The financial crisis has proved that the internationalisation and interconnection
of financial institutions represent sources of systemic risk which, up to then,
had been widely neglected. While both at EU and national level, extensive
amendments have been made to the regulatory frameworks for financial
supervision and consumer protection, many of the tasks are yet to be
completed. One of the outstanding projects is the creation of a banking union.
The objective of these adaptations is to build a well-functioning financial
system, which even in times of crisis will be a solid foundation for the economy
and society as a whole.

The government of the federal state of Hessen is also contributing by taking a
clear position and supporting the current legislative process for financial
regulation both at domestic as well as EU level. Moreover, it is an active
member of Frankfurt Main Finance, an initiative focusing on the marketing,
interconnection and the future of the financial centre of Frankfurt, which forges
a close relationship between political and commercial representatives among its
members.

Internationalisation as well as the policy changes as a result of the financial
crisis are increasing the pressure for innovation on financial institutions.
Product life cycles are getting shorter and financial products are becoming
increasingly complex. This, of course, creates a demand for highly skilled
professionals in the banking sector. This need is being addressed by the
Frankfurt School of Finance & Management and the House of Finance (Goethe
University Frankfurt), among others. In particular the House of Finance, a great
example of an effective public-private partnership, offers a specific focus in the
field of financial industry research which is unique in Europe. By pooling their
expertise, researchers and financial institutions can achieve high levels of
synergy.

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