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Commercial Banks
The Commercial banks in Germany as a whole, accounted for roughly 25% share in the total volume of banking business.
There are four different classes of banks under Commercial banks category.
- The Big Banks
- Regional and other Commercial banks
- Foreign banks
- Private banks
The Big Banks
Deutsche Banks, Dresdner Bank, Commerzbank and their Berlin subsidiaries operate nationally through network of local branch offices. Although these banks are major banks in term of their balance sheet volume, however, their share is not as significant in overall banking business volume.
However if their interest in private business like mortgages is included in the volume, the case may be different.
Regional and other Commercial banks
These banks are all banks other than those big banks. These banks concentrate on providing universal banking services in their particular regions, but some maintain their system of branches which had allowed them to operate on interregional or national basis. Two such banks with an extensive branch network are the Bayerische Vereinsbank and the Hypo-bank. These two large banks are even permitted to engage in mortgage business.
Foreign and Private Banks
Foreign banks in the German banking system had not been significant overall. Foreign banks are permitted to engage in those sorts of businesses, which are allowed to domestic banks.
Private Banks consists of limited partnership (sole ownership is not allowed under German banking law). Although private banker conducts all banking activities, but they are specialized in export finance, securities trading, industrial finance, property management and housing finance.
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