The German financial services sector is important, but smaller relative to the size of the economy than that of the US, UK or Japan. However, with assets worth nearly seven times annual GDP, its size does present risks to economic stability.
The country's financial system endured substantial losses, particularly from US investments, as a result of the global crash in 2008. Conditions have stabilised to a degree, but the weakness of the German banking sector will remain a concern, given low capital levels, high leverage and dependence on wholesale funding. Moreover, it remains significantly exposed to troubled euro zone economies, so would face substantial losses should the crisis escalate once again and/or further sovereign debt restructurings occur in the coming years. Low profitability across the sector will also present challenges in boosting capital levels to regulatory thresholds. In mid-2013 Commerzbank, Germany's second-largest bank, announced 5,200 job cuts by 2016.

Financial services report 2

Banks 3

Insurers 7

Asset managers 9

Financial markets and instruments 10

Financial regulation 12

Monetary and currency policy 15

Germany at a glance 17

Fundamental indicators 18

Key contacts 19

Industry publishing schedule 20

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