Preface Now in its fourth edition, Banking Business in Germany presents the legal and economic frameworks for the banking sector in Germany. For banks and the financial industry as a whole, the Rhine-Main economic region and the city of Frankfurt in particular are a commercial hub of great international importance. With the European Central Bank and the Bundesbank located here, Frankfurt is a leading location for international monetary and currency policy. Together with the European Insurance and Occupational Pensions Authority (EIOPA) and the European Systemic Risk Board (ESRB), having joined in early 2011, Frankfurt can boast a competitive regulatory environment. And with Deutsche Börse Group, the Rhine-Main economic region continues to be home to one of the world’s leading stock exchange organisations. 221 credit institutions, with more than three quarters of them being foreign institutions, have chosen the financial centre of Frankfurt as their base. Despite the financial crisis and the consolidation in its wake, the still high number of foreign banks (156 banks in 2012) demonstrates continued interest in being represented in this financial centre, in the benefit of being in close proximity to other key players and that Frankfurt has earned an excellent worldwide reputation. The financial crisis has proved that the internationalisation and interconnection of financial institutions represent sources of systemic risk which, up to then, had been widely neglected. While both at EU and national level, extensive amendments have been made to the regulatory frameworks for financial supervision and consumer protection, many of the tasks are yet to be completed. One of the outstanding projects is the creation of a banking union. The objective of these adaptations is to build a well-functioning financial system, which even in times of crisis will be a solid foundation for the economy and society as a whole. The government of the federal state of Hessen is also contributing 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 as well as the policy changes as a result of the financial crisis are increasing 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.weiterlesen