Banking: a leader in its sector
Bavaria plays a major role in the German banking industry. Munich is the second most important city for banking in the country. Its banking community comprises some 160 banks. Of them, some 50 are headquartered in the city, with these including two of Germany’s largest: Hypovereinsbank (HVB), which merged in 2005 with Italy’s UniCredit to form the first truly pan-European bank and BayernLB. The large number of offices maintained by foreign banks in Munich details its banking community’s international reach.
Bavaria itself is home to nearly 500 banks, including 72 savings banks, 300 credit unions and 84 private banks. Employing some 121,000 persons and accounting for a quarter of the Germany-wide total, this number of 500 is greater than that of any other German state – and even that of Switzerland, which is regarded as the land of banking par excellence. The size of Bavaria’s banking community is detailed by the some 500 billion euros in loans it has outstanding to companies, consumers and public sector entities. Much of this credit has gone for mortgages, an area in which Bavaria’s banks have traditionally played a major role. Munichbased banks have issued one third of all mortgage bonds outstanding in Germany.
Bavaria’s banking community*
Number of financial institutions: 456
private banks: 84
savings banks: 72
credit unions: 300
private banks: 29,000
saving banks and publicly-owned state-level banks: 56,600
credit unions: 35,000
Total loans outstanding: 500 billion euros
* data is from 2010 and has been partially rounded off