Modern office Building in Frankfurt, Germany Modern office Building in Frankfurt, Germany | © Nikada/Getty Images

Financial Services

The financial sector plays a fundamental role in the proper functioning of the economy and is an important key infrastructure.

The financial resources required in a modern national economy can only be provided by the presence of a stable financial system. Germany is the largest national economy in Europe and has an AAA ranking. This is because of its outstanding financial economy which acts as the “backbone“ of the real economy – accompanying and supporting further growth and development.

Financial Services within German Economy

Germany differs from other highly centralized countries, where the capital or largest city is the most important economic and financial sector, by having a number of strong financial locations where financial centers are established.

Germany is the largest market in Europe and the gateway to the European Union (EU). The EU passporting system allows financial service providers based in one EU member state to easily access all other EU Moreover, the EU single market allows financial institutions based in Germany to do business from anywhere in the EU, and have direct access to one of the most important global economic areas (GDP EUR 13,928 billion and over 446 million consumers in the EU-27 region).
BaFin, the Federal Financial Supervisory Authority, is an important partner within the financial services industy. The German financial regulator provides internationally accepted and recognized technology-neutral regulation. Germany provides international financial service providers with attractive location conditions for the development of their European business.
Financial services and insurance providers contributed around EUR 119 billion to GDP in 2019 – equivalent to almost four percent of total domestic GDP. The financial services and insurance sector employs a workforce of around 1.2 million people in Germany.

German financial centers team up as GERMANY FINANCE

The initiatives of major German financial centers founded the GERMANY FINANCE working group at the beginning of 2021.

germany-finance-logo-572x362 The working group of German financial centers. | © Germany Finance

Germany differs from other highly centralized countries, where the capital or largest city is the most important economic and financial sector, by having a number of strong financial locations where financial centers are established.

GERMANY FINANCE is an informal association of the German financial center initiatives from Frankfurt, Hamburg, North Rhine-Westphalia, Munich and Stuttgart with the aim of increasing and communicating the attractiveness and diversity of Germany as a financial center.The participating organizations have initiated a joint platform to further promote the continuous exchange among each other and to provide a central point of contact for people from Germany and abroad who are interested in Germany as a financial center. 

More about GERMANY FINANCE

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