The Money, The banks and credit
Germany has a vital banking tradition that dates back to the great Fugger money-lending empire in the 15th and 16th centuries, and before that, the limited banking practices required by the Hanseatic League (Hansa) of northern Germany in the 14th century. Germany’s first commercial bank was established Hamburg in 1620. The Giro bank lasted until its takeover by the state-run Reichsbank in 1876.
By the early 1800s Frankfurt am Main was a banking center under the House Rothschild. The Rothschilds, in fact, took their name from the red (roth) shield (Schild) on the front of their Frankfurt home during the first years of the Jewish family’s history. Their banking dynasty soon extended beyond Frankfurt London, Naples, Paris, and Vienna. Between 1870 and 1872 several other important German banks evolved, some of which are still around in one form or another.
World First currency transfers
The five largest German banks are Deutsche Bank, Dresdner Bank, Westdeutsche Landesbank, Commerzbank, and the Bayerische Vereinsbank. The only German bank to rank among the top 10 world banks in size is Deutsche Bank (3rd). (Switzerland’s USB is first and Credit Suisse ranks 7th.) [See current rankings.] Frankfurt’s present-day skyline consists largely of the gleaming towers that serve headquarters for Germany’s banks, a sight that has led to one of the German financial capital’s nicknames: “Bankfurt.” In 1994 Frankfurt won the heated contest to house the European Monetary Institute (EMI), the precursor to the current European Central Bank which began operations in Frankfurt in January 1999 with the introduction of the euro. Now more than ever, Germany can rightfully bill itself as Finanzplatz Deutschland - Germany, the Financial Center. Until the European Central Bank began operation in 1999, Germany’s Bundesbank, known as the Buba the financially literate, was Europe’s most influential central bank. For all practical purposes, the Bundesbank was to Europe what the U.S. Federal Reserve Bank is to the U.S. …
Switzerland and banking are, of course, synonymous terms, with Zurich being the Swiss (and a world) financial center. Switzerland has nearly 600 banking institutions with many more branches and more than 1,101 savings banks (Sparkassen). In Austria the Creditanstalt bank and Bank Austria in the banking center of Vienna are two of the most important of the 1,101 financial institutions with 4,601 branches. [The two Austrian banks merged in 1998 and joined Germany’s HypoVereinsbank in 2009.]
Most people are more concerned about which bank is closest and offers the best rates and services than about financial philosophy. Banking in Germany is divided into three types of institutions: the larger private commercial banks, like those mentioned previously, the savings banks (Sparkassen), and the cooperatives credit unions (Raiffeisenbanken, Volksbanken). But German banking has been going through changes since reunification, particularly in the eastern part of the country, with mergers and blendings of banking types that may change the German banking landscape considerably…
When you enter a German, Austrian, or Swiss bank, looks pretty much like a bank in America, but there are a few differences—only some of which have to do with the language. Geldwechsel (money exchange), Girokonto/Sparkonto (checking/savings account), and Kasse (cashier’s window, teller) are the most important words to know. Many German banks, in characteristic German compartmentalization, only allow you to do certain things at certain windows. So watch for those signs. There is, however, a newer tendency for banks to be less specialized window, and to offer a variety of services, American style, at most teller windows.
One thing most banks still have is the “glass cage.” Whether you are cashing a traveler’s check or withdrawing funds, you usually have to go to a special cashier’s window, enclosed in thick bullet-proof glass, to collect your money. Although German banks usually have an open, relaxed interior decor, glass cage is a reminder that Germany too has bank robbers.
Walk by any small-town bank in the most remote corner of Europe, and you will see the latest exchange rates for a multitude of national currencies on display (usually with colorful national flag symbols)…
Germans have a checking account system that Americans find a little confusing. In the U.S. the personal checking account is used for paying bills, buying goods and services, and checks are made payable to an individual or company name. The Germans do it differently; they use a Geldüberweisung or money transfer made out to an account number [and] a name. To pay for a magazine subscription, for example, you make out a transfer check (Überweisung) payable not to the magazine but to a BLZ and Girokonto number. A BLZ is a Bankleitzahl or bank code number, similar to the bank numbers you see on U.S. bank checks. A Girokonto (ZHEE-ro KON-toh) is a specific transfer account for a firm, organization, (The number of the magazine’s account would be printed on the order form for the magazine.) The Überweisung authorizes the bank to transfer a sum of money from your account to the magazine’s account (like a check), but you have to do it by the numbers, and instead of sending a check to the magazine, you send (or take) the Überweisung to your bank. [Today an electronic Geldüberweisung (EFT) is much more common.]
Eurocheques [now mostly. EC bank card] accepted all over Europe by stores, businesses, hotels and restaurants. the Eurocheque card used connection with the Eurocard (MasterCard) is a type of bank guarantee card and credit . You can obtain a Eurocheque account through a European bank, once you have established a good credit record. The bank can also provide automatic payment or electronic transfers for monthly or other regular billings. Almost any banking service you would expect in the U.S., plus some not offered in the U.S., is available from European bank. If you have a computer [with Internet access], home banking is also available in Germany…
When in Germany, Do as the Germans Do by Hyde Flippo is “the clued-in guide to German life, language, and culture.”
Do you want to blend in when visiting Berlin? To feel like you belong in Bavaria? When in Germany, Do as the Germans Do makes it simple! If you long to navigate the narrow streets of an Alpine village unnoticed or go to a movie in Munich without turning heads, transform yourself from a typical tourist into connoiseur of culture. With this crash course in German customs and heritage, you’ll avoid embarrassing blunders and enrich your travel experience.
Packed with almost one hundred articles, this handy collection of cultural dos and don’ts covers a broad range of topics, including food, art, pop culture, politics, business, entertainment, and more. With light-hearted quizzes, cool websites, and up-to-date insights into all aspects of German culture, When in Germany, Do as the Germans Do will delight everyone from students and tourists to armchair travelers and trivia buffs.
On the pages of When in Germany, Do as the Germans Do, you’ll find authoritative answers to questions such as:
- At a restaurant, should I find my own table or wait to be seated?
- What is a suitable topic for small talk with a stranger in Germany?
- Are gas stations open Sundays?
- What Goethe novel swept the world in the 1770s?
- Where do Germans get their fascination with the American Wild West?
- Can I use an ATM card in Germany?