Germany is a central European country with fourth largest economy in the world after the US, Japan and China. It has 82 million consumers and has a nominal GDP of $ 3.352 trillion. Financial system in Germany is a traditional banks based system. Firms still rely on banks instead of capital markets.
In this paper we will analyze the banking system of Germany, its main institutional investors, the Stock and Bond markets and finally the affects of financial crisis in financial sectors and the implementation of Basel II nationally.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Banking System in Germany
- Private Commercial Banks
- Regional Banks
- Foreign Banks
- Loan and Saving Associations
- Co-operative Banks
- Private Commercial Banks
- Institutional Investors
- Insurance Companies
- Investment Funds
- Open-end Funds
- Closed-end Funds
- Stock and Bond Market
- Stock Market
- Bond Market
- Financial Crisis of 2008 and Basel II
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper provides an analysis of the German financial system, specifically focusing on the banking system, institutional investors, the stock and bond markets, and the impact of the 2008 financial crisis. The key objectives of the paper are to understand the structure and workings of the German financial system and to analyze its strengths and weaknesses. The main themes explored include:- The dominance of banks in the German financial system
- The structure and types of banks operating in Germany
- The role of institutional investors, particularly insurance companies and investment funds
- The organization and functioning of the German stock and bond markets
- The effects of the 2008 financial crisis on the German financial system and the implementation of Basel II
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction
This section introduces the German financial system, highlighting its size and importance in the global economy. It establishes the reliance on banks for financing firms and outlines the paper's scope, which includes analysis of the banking system, institutional investors, stock and bond markets, and the impact of the financial crisis.Banking System in Germany
This chapter provides an overview of the structure and composition of the German banking system. It highlights the dominance of banks and discusses the different types of banks operating in Germany, including private commercial banks, loan and saving associations, and cooperative banks. The chapter also analyzes the specific roles of regional banks, foreign banks, Landesbanken, and specialized banks.Institutional Investors
This section discusses the role of institutional investors in the German financial system, focusing primarily on insurance companies and investment funds. It explores the significance of these institutions in capital markets and their management of assets. The chapter also provides an overview of the German insurance market and its global significance.Stock and Bond Market
This chapter examines the structure and functioning of the German stock and bond markets. It explores the key aspects of these markets, including their role in providing capital for businesses and their contribution to the overall financial system.Financial Crisis of 2008 and Basel II
This chapter focuses on the impact of the 2008 financial crisis on the German financial system and discusses the implementation of Basel II. It explores the regulatory changes introduced in response to the crisis and the subsequent efforts to strengthen the financial system.Schlüsselwörter (Keywords)
The key terms and concepts explored in this paper include the German banking system, financial system, institutional investors, insurance companies, investment funds, stock market, bond market, financial crisis of 2008, Basel II, regional banks, foreign banks, loan and saving associations, cooperative banks, and the Landesbanken. The paper examines the structure and function of the German financial system, exploring its strengths and weaknesses, and analyzes the impact of global events on the German financial landscape.
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- Bikal Dhungel (Author), 2010, Financial System of Germany, Munich, GRIN Verlag, https://www.grin.com/document/170912