Number of banks and branch offices by category of banks

Just over 55% of all German banks are credit co-operatives. Most of the banks in this category are comparatively small, however. 55% of all credit co-operatives have a balance sheet total of less than 250 million euros. Given the number of very small banks, this sector has been under particular pressure to consolidate. Of the approximately 800 banks to have closed in the last five years, 600 were credit co-operatives.

1995   2004     Number of banks   Number of domestic bank offices   Number of banks   Number of domestic bank offices Comm. banks   316   21,286   357 (2)   15,107 (2) Landesbanks   13   668   12   549 Savings banks   578   18,245   477   14,769 Credit cooperatives(1)   2,039   17,856   1,340   14,318 (1) Including central institutions. (2) Only limited comparison with earlier figures possible as a result of the inclusion of securities trading banks in 2002.

Source: Deutsche Bundesbank

The number of branches is declining across the banking market. The commercial banks have closed around 6,000 branches since 1999, the savings banks and Landesbanken together 3,700 and the credit co-operatives 3,500. Branch networks are being “pruned” in all sectors of the banking industry.

This development is the result of the long-standing structural difficulties facing the German banking market. Banks in all sectors have been making successful efforts to improve earnings and cut costs. This includes scaling back the branch network. The figures conceal the fact, however, that the reduction in the number of branches has been accompanied by a change in the type of services they offer, with greater emphasis on supplying information and advice and increasing automation of routine transactions.