Market shares of the commercial banks

The five big banks have a combined market share of just over 18% (measured in terms of total assets). Despite the falling number of banks, there is evidently still very little concentration in the German banking sector. No other country in the European Union has such a fragmented banking market.

 

In %   All comm. banks   Big banks   Regional banks   Branches of foreign banks   Balance sheet total   28.2   18.3   8.5   1.4   Loans to banks   31.8   21.1   7.9   2.7     - domestic banks   12.6   6.6   4.9   1.1     - foreign banks   59.0   41.7   12.2   5.1   Loans to non-banks   26.3   15.9   9.3   1.1     - domestic non-banks   23.4   13.0   9.4   0.9     * enterprises and self- employed persons   25.8   15.4   8.8   1.6       • housing loans   22.7   13.3   9.4   0.0       • comm. loans   26.9   16.1   8.6   2.2     * individuals   26.1   12.9   12.7   0.5       • housing loans   22.4   14.4   8.1   0.0       • consumer loans   38.0   8.2   27.5   2.2     - foreign non banks   48.0   37.3   8.4   2.3   Deposits of banks   36.7   24.0   9.3   3.4     - domestic banks   20.8   10.2   10.0   0.6     - foreign banks   65.2   48.6   8.1   8.4   Deposits of non-banks   28.9   17.9   10.4   0.7     - domestic non-banks   25.6   14.1   11.0   0.5     *savings deposits   17.3   11.6   5.7   0.0     - foreign non- banks   52.5   44.7   6.2   1.6   Bearer debt securities   13.2   10.0   3.2   0.0

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

Cross-border money market transactions are the only exception – here the big banks account for around 40% of total lendings and almost half of all deposit operations. This sub-group also holds a substantial market share of the deposits of foreign non-banks. The regional banks are strong in the consumer loan sector.