Preface Welcome Now in its third edition, Banking Business in Germany presents a current overview of the legal and economic frameworks for the banking sector in Germany. When it comes to banking and finance, the Rhine-Main economic region and the city of Frankfurt in particular are among the leading international locations. Both the European Central Bank and the Bundesbank are located in Frankfurt, and the new European Insurance and Occupational Pensions Authority (EIOPA) was established here in January 2011. Once the planned merger of Deutsche Börse Group and NYSE Euronext has been completed at the end of 2011, Frankfurt will be home to the world’s leading stock exchange organisation. 215 credit institutions, with almost three quarters of them being foreign institutions, have chosen the financial centre of Frankfurt as their base. The still high number of foreign banks (152 banks in 2010) despite the financial and economic crisis, the consolidation in the wake of the financial crisis as well as many banks’ retreat to their domestic markets proves that Frankfurt is not losing its appeal as a financial centre. The benefit of being in close proximity to other key players and Frankfurt’s excellent worldwide reputation sustain the continued interest in this city. The financial crisis which began in 2007 has demonstrated that the internationalisation and interconnection of companies represent sources of systemic risk which, up to then, had been widely neglected. In order to adapt to the new situation, the regulatory frameworks for financial supervision and consumer protection are currently being amended and will be so amended in the future. The objective is to build a well functioning financial system, which even in times of crisis will be a solid foundation in order to contribute to the economy and society as a whole. The government of the federal state of Hesse is also contributing as well by taking a clear position and supporting the current legislative process for financial regulation both at domestic as well as EU level. Moreover, it is an active member of Frankfurt Main Finance, an initiative focusing on the marketing, interconnection and the future of the financial centre of Frankfurt which forges a close relationship between political and commercial representatives among its members. Internationalisation is increasing, and so too is the pressure for innovation on financial institutions. Product life cycles are getting shorter and financial products are becoming increasingly complex. This, of course, creates a demand for highly skilled professionals in the banking sector. This need is being addressed by the Frankfurt School of Finance & Management and the House of Finance (Goethe University Frankfurt), among others. In particular the House of Finance, a great example of an effective public-private partnership, offers a specific focus in the field of financial industry research which is unique in Europe. By pooling their expertise, researchers and financial institutions can achieve high levels of synergy. We welcome all financial institutions coming to Germany and contributing to this financial market, thereby enabling customers of financial products to choose from a diverse range. I hope you will find this publication inspiring and I cordially welcome you to Germany. Dr. Thomas Schäfer Minister of Finance of the State of Hesseweiterlesen