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The commercial banks' business with
domestic and foreign customers

Within the category of the commercial banks, international operations play a particularly important role for the big banks, which have traditionally been geared towards international activities, and for the branches of foreign banks. In the latter sub-group, cross-border transactions account for over half of their lending and 60% of their funding.

% of balance sheet total   All comm.
banks
  Big banks   Regional
banks
  Branches of
foreign
banks
 
Lending to
domestic banks
  7.2   5.8   9.3   12.2  
Lending to
foreign banks
  23.9   26.0   16.3   41.6  
Lending to
domestic
non-banks
  32.9   28.3   43.9   26.4  
Lending to
foreign
non-banks
  9.3   11.1   5.3   9.1  
Domestic
securities
holdings
  10.6   11.0   11.0   3.6  
Foreign
securities
holdings
  5.6   5.1   7.0   2.1  

Deposits of
domestic banks
  11.9   9.1   19.1   6.8  
Deposits of
foreign banks
  20.9   24.1   8.6   54.6  
Deposits of
domestic non-banks
  30.0   25.5   42.5   12.4  
Deposits of
foreign non-banks
  8.7   11.4   3.4   5.3  

Source: Deutsche Bundesbank, figs. for year-end 2004.

In the case of the big banks, it is above all their interbank operations which are geared to the international market. This is due, among other things, to the fact that these banks have built up a strong position on the money market in the euro area and play an important role in supplying the eurozone banking system with liquidity. The figures also reflect the large number of transactions between their domestic bank offices and their branches outside Germany.

Despite their increasing targeting of the international market, the main focus of both the big banks and the regional banks remains on the domestic market.

Private banks
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