Munich's financial community consists of the

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

companies, and other providers of financial services located in

Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and Ha ...

and its region. Prime among the insurers are two global players:

Munich Re Munich Re Group or Munich Reinsurance Company (german: Münchener Rück; Münchener Rückversicherungs-Gesellschaft) is a German multinational insurance company based in Munich, Germany. It is one of the world's leading reinsurers. ERGO, a Muni ...

(turnover in 2012: €52.0 billion) and Allianz (turnover in 2012: €106.4 billion). Munich's banking sector is large and multifaceted. All told, the region's insurers and banks employ 55,810 people – equivalent to 8.1% of the region's total workforce.

Insurers

Employing some 33,000 persons, Munich's insurance sector is the largest in Germany and is among the world's leaders. Headquartered in the Munich region are some 60 insurers, including the Allianz Group, Munich Re, D.A.S., Versicherungskammer Bayern and Bayerische Versorgungskammer. Also at home in the region are such non-German insurers as

Swiss Re Swiss Reinsurance Company Ltd,
Swiss Re. Retrieved on 18 January 2011. "Swiss Reinsurance Company Ltd ("Swiss Re") ...

Banks

Home to 160 banks,

savings bank A savings bank is a financial institution whose primary purpose is accepting savings deposits and paying interest on those deposits. They originated in Europe during the 18th century with the aim of providing access to savings products to al ...

s and

credit union A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provisi ...

s, Munich has the second largest banking sector in Germany, the largest being at

Frankfurt Frankfurt, officially Frankfurt am Main (; Hessian: , " Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on it ...

am Main. Munich's 50 banks include Bayerische Hypo- und Vereinsbank AG, which merged with

Unicredit UniCredit S.p.A. is an international banking group headquartered in Milan. It is Italy's only systemically important bank (according to the list provided by the Financial Stability Board in 2022) and the world's 34th largest by assets. It was fo ...

to form a European-level banking group; and

BayernLB Bayerische Landesbank (BayernLB; Bavarian State Bank) is a publicly regulated bank based in Munich, Germany and one of the six Landesbanken. It is 75% owned by the Free State of Bavaria (indirectly via BayernLB Holding AG) and 25% owned by the ''S ...

. Stadtsparkasse München is one of Germany's largest savings banks. Mortgage-related transactions are one of the sector's specialties. Munich-based banks issue one third of all Germany's mortgage bonds.

Asset management

In 1949, the Munich-based ADIG became Germany's first collective investment scheme. Today, asset managers owned by Munich-based companies administer assets worth substantially more than one trillion euros.

Munich Stock Exchange

Traded on the Munich Stock Exchange, which is owned by Bayerische Börse AG, are stocks, bonds, funds, ETFs and

ETCs The European Train Control System (ETCS) is the signalling and control component of the European Rail Traffic Management System (ERTMS). It is a replacement for legacy train protection systems and designed to replace the many incompatible s ...

. The Exchange's m:access provides SMEs with a way of securing equity. Dealt on the Exchange's Contrex and greenmarket platforms are CFDs and emission certificates.

Private equity and venture capital

More than 40

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...

and

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...

companies are headquartered in Munich. Also in the city are a large number of other companies in the sector.

Leasing and factoring

The Munich region is home to Germany's largest leasing sector. Of the some 200 members of Germany's Association of Leasing Companies (holding a 90% share of the country's market), nearly 20% are headquartered in the region,Germany’s Association of Leasing Companies
Members Directory
/ref> including Kommanditgesellschaft Allgemeine Leasing (KGAL), LHI Leasing and Hannover Leasing. Home to such companies as Eurofactor AG, Munich's factoring sector is among the largest in Germany.

Capital provision institutions

Munich is home to two institutions that are major providers of capital: LfA Förderbank Bayern and BayBG Bayerische Beteiligungsgesellschaft. The LfA's main activity is the supplying of cost-advantageous loans to start-ups and to SMEs. BayBG provides equity to SMEs, to which it then serves as a silent partner.

Institutions

Rounding out Munich's financial community are the office of the Deutsche Bundesbank and such dedicated organizations as Bavaria's Banking Association and the Association of Bavarian Savings Banks.

References

External links

Website Munich Financial Center Initiative

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Website LfA Förderbank Bayern

Website Deutsche Bundesbank, Munich Regional Office
Economy of Munich