The Financial and Banking System of: Germany

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The Financial and Banking System of:

Germany

Presented

In Partial Fulfillments of the

Course Requirements

for

FIN 4634

International (Global) Banking

Prepared for:

Marcos A. Kerbel

Participating Adjunct Professor

Department of Finance

Florida International University

Miami, Florida

Prepared by:

Leonardo Torres

ID:5060227

(786)-369-9534

Ltorr135@fiu.edu

Date of Report

April, 16, 2017

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I. Table of content PG.2-3

II. Geography PG.5-7

III. History of Germany PG.7-8

IV. Germany Financial System PG.8-14

A. Historical Overview pg. 8

B. Present Monetary and Law Regulations pg. 9-10

C. Types of Financial Institutions operating in the country pg. 10

D. The Central Bank pg. 10

E. Bank Regulation pg. 11-12

F. Commercial Banks operating in Ecuador pg. 12-14

1. Commercial-Principal domestic and foreign banks operating in the country pg. 11

2. Savings & Mortgage Banks pg. 12

3. Development Banks pg. 12-13

4. Other Financial firms pg. 14

V. Germany Balance of Payment and Balance of Trade- Principal Sources of Exports,

Imports, investments, and funds transfers PG. 14-17

VI. Foreign Reserves PG. 17-18

VII. Current Situation of the country’s currency PG. 18-19

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VIII. Risk of those banks in Germany face- such Currency, Political, Regulatory,

Crime, etc. PG. 19-20

IX. What is Germany doing about Preventing, Detecting and Eradicating Money

Laundering and Terrorist Financing? PG. 20–21

X. Important Bank Failures and Scandals in Germany. PG. 20

XI. Summary and Conclusion PG. 21

XII. What is the Future Outlook for Germany and its Financial System PG.21

XIII. Would you Approve Lines of Credit for Banks in this Germany? PG.21–22

Explain Your Yes or No Decision.

XIV. Appendices PG. 22-24

XV. Bibliography/Footnotes PG.24–25

XVI PG. 26

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The Financial and Banking System of: Ecuador

II. Geography

The German flag consists of three equal horizontal stripes – the bottom stripe is gold;

the middle is red; and the stop stripe is black.

These colors have been associated with Germany ever since the middle ages but there

is knowledge of the current German flag colors being traced back to early 19th century

war volunteers, who posed as military forces during the Napoleonic wars. The colors

are mainly based on the colors used for the uniforms of these soldiers which were black

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coats with red braid and gold buttons. The modern flag was espoused on May 9,1949.

The current colors of the German flag now are a representation of the unification of

Germany as a country.

If measured by size, Germany happens to be the seventh-largest European country and

there is quite a variation from north to south in the topography.

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The North European Plain encompasses across the northern grasps of the country; this

flat, low-lying terrain is dismembered by several bogs, rivers and streams, and is mostly

used as farmland.

The North Sea shoreline is low, swampy wet land, with ditches, mudflats and

disseminated islands. The Baltic Sea is mountainous with some toothed cliffs. Rugen,

Germany’s biggest island, is forested and relatively mountainous with steep cliffs and

sandy beaches.

In the northeast, and then extending to the south of Berlin, Germany’s land remains

sandy and scattered by loads of generally lesser lakes formed by receding glaciers

during the last Ice Age.

The land then upswings into the forested uplands of central Germany. Main landforms

here involve the volcanic in origin Harz Mountains and the densely

wooded Rothaargebirge Mountains.

Further south the smoothed hills and mountains of the Eifel and Huynsruck

uplands front the Rhine River Valley. The Vogelsberg Mountains, Rhon Plateau and

Thuringian Forest are the dominate features that move eastward through Germany. The

uplands linger eastward, ultimately rising into the Ore Mountains on the Czech Republic

margin.

In the distant south the land remains mostly mountainous, with greatly forested

mountains.

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Location:

Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands

and Poland, south of Denmark

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“Europe.” World Atlas – Maps, Geography, travel. N.p., 12 Aug. 2015. Web. 16 Apr. 2017.

Geographic

coordinates:

51 00 N, 9 00 E

Land

boundaries:

total: 3,621 km

border countries: Austria 784 km, Belgium 167 km, Czech Republic 646 km, Denmark

68 km, France 451 km, Luxembourg 138 km, Netherlands 577 km, Poland 456 km,

Switzerland 334 km

Terrain:

lowlands in north, uplands in center, Bavarian Alps in south

Natural hazards:

flooding

Environment –

emissions from coal-burning utilities and industries contribute to air pollution; acid rain,

resulting from sulfur dioxide emissions, is damaging forests; pollution in the Baltic Sea

from raw sewage and industrial effluents from rivers in eastern Germany; hazardous

waste disposal; government established a mechanism for ending the use of nuclear

power over the next 15 years; government working to meet EU commitment to identify

current issues: