Since the 19th century foreign banks have taken an active part in the German market and have provided bank services, such as loans, documentation, currencies as well as guarantees in exchange businesses and dealt with the payment transactions between their home countries and Germany. The internationally linked economy meanwhile demands further services, for instance for cross-border company acquisitions and mergers, large volume financials or issues. Also for investment banking services, retail and universal banking, foreign banks take part actively in Germany.
The business models, services and competences of foreign banks are largely diverse. The private and institutional clients in Germany profit from a diverse range of offers as well as from the combination of international experience and the network of an internationally established group of companies. In the following areas the foreign banks are especially committed:
Sales of Innovative and Established Foreign Products
As a rule, the products of foreign financial institutions are first launched when they have proved themselves in their domestic markets. This brings experience and innovation to the German financial market.
Access to Internationally Active Companies
For many companies, which are active internationally, the foreign banks form an access, due to their cross-border business activity, to the respective export markets. Especially worldwide established institutions can single-handedly offer their clients services independently from the respective country.
Trade Financing and Initiation of International Businesses
Foreign institutions look after cross-border businesses between their respective countries and Germany in case of trade financing. With their expertise in the domestic market, they often already have the effect of the initiation of businesses.
Financing and Syndication
Moreover, foreign banks have established themselves in the company financing (company capital and outside capital). Also for syndication of large volumes of loans they are strongly committed. This preserves the necessary liquidity of the German economy.
One traditionally important domain of many foreign banks is asset management, often stated as Wealth-Management. For individual clients or groups of clients individual tailored investment products are offered.
Trading on the German stock markets – especially on the Frankfurt Stock Exchange and the futures market EUREX – foreign banks are strongly present and so contribute to the liquidity of the markets.
Im Handel an den deutschen Börsen – insbesondere der Frankfurter Wertpapierbörse und der Terminbörse EUREX – sind Auslandsbanken stark präsent und tragen so zur Liquidität der Märkte bei.
Security Deposit Services and Security Bank Services
Internationally established and globally linked security deposit banks – Global Custodians – make it possible for funds companies and other investors – to invest in financial institutions and to manage these in the respective countries.