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They comprise the major banks and the regional banks as well as the branches of foreign banks. Besides the credit- and deposit business the issuance of securities (Emissionsgeschäft) and the foreign business play an important role.

The group of the savings banks and state banks (Landesbanken) holds the biggest share in the German banking sector (calculated on the basis of the business volume). The savings banks are mainly held by local communities. The savings banks do provide today nearly all banking services. However, there key business is the deposit business and the granting of residential construction loans (Wohnbaudarlehen) and of loans to medium sized enterprises.
Other public law banks are (i) the state banks which render services to the savings banks and perform the financial transactions of the federal states as well as (ii) the state home savings and loan associations (Landesbausparkassen).

The so called Volks- und Raiffeisenbanken were originally established as institutions for financial self-assistance to trade merchants, craftsmen and the agriculture. The business model of the cooperative banks primarily aims at small and medium sized enterprises. The cooperative banks are closely connected to their top institutes (DZ-Bank, WGZ-Bank) which – similar to a state bank – exercise functions of a central bank for their member banks.

Defined narrowly it is the trade with central bank deposits by which the commercial banks conduct their exchange of liquidity. One distinguishes call money (Tagesgeld) and time deposits (Termingeld) with a term of up to one year. In addition, the refinancing transactions between central banks and the credit institutions are also considered as part of the money market. The money market defined more broadly also encompasses the trade in money market securities (Geldmarktpapiere).

The business model of the private mortgage banks and the public law real estate credit agencies is primarily to grant long term loans for the financing of residential construction work, public investments and of the local authorities. The real-estate credit institutions finance themselves predominantly by the issuance of debt instruments (German covered bond – Pfandbrief) and by long term deposits.

These institutions are important for the financing of long term investment. Among them are also the subsidy banks (Förderbank) of the federal states. The Kreditanstalt für Wiederaufbau (KfW) is not considered to be such an institution with special responsibility although it is also engaged in public subsidization procedures.

The home savings and loan associations are an independent group in the banking sector. They receive savings for home construction. After an initial savings period they grant loans at a reduced interest rate for private construction works. Home savings and loan associations can be found in all three columns of the banking market.

Especially the private life insurance companies receive constant premium payments in a large amount. They can make available these investments to the economy and the state for a medium- or long-term period. One must differentiate between the private insurance companies and the public social insurances. The latter is mainly financed by sharing of costs and expenses (Umlageverfahren) and does not appear as an investor in the financial markets.

The capital investment companies manage two types of investment funds: public mutual funds open to everybody and special funds which are marketed for large scale investors (e.g. insurance companies). The funds can be equity funds (Aktienfonds), bond funds (Rentenfonds), money market funds (Geldmarktfonds), real estate funds (Immobilienfonds) as well as mixed funds (Mischfonds) or funds of funds (Dachfonds). Since a few years German capital investment companies can market hedge funds.

It is on the securities markets where investors and capital seekers come together directly. In Germany, the focus is on the issuance of debt instruments (Schuldverschreibugen – Rentenwerte). Particularly, the state finances its credit needs in this way. The stock market compared to the bond market serves the intake of equity. Mainly, large enterprises use stocks for their financing purposes.