Article 3: The Structure of German Banking

The German banking system is made up of two main types of banks: commercial banks and savings
banks. Commercial banks are privately owned and are responsible for providing financial services
to businesses and individuals. They offer a wide range of services, including deposit accounts,
loans, and credit cards.

Savings banks, on the other hand, are public institutions that are owned by local communities.
They focus on providing financial services to individuals and small businesses in their local area.
They are often referred to as Sparkassen and are the largest banking group in Germany.

In addition to commercial banks and savings banks, there are also cooperative banks and
development banks in Germany. Cooperative banks are owned by their members and focus on
providing financial services to small and medium-sized enterprises. Development banks are public
institutions that provide financing for large-scale projects and infrastructure.

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