Comparison of Banking System & Financial System in Germany & Philippines Economy

1. Comparison of Banking System & Financial
Market of Germany & Philippines
GHULAM HASNAIN

2. Introduction
Germany Philippines
Population 80.9 Millions 100.69 Millions
Currency: Euro Currency: Peso
4th largest economy in the world by
nominal GDP (2015)
36th largest economy by nominal GDP
(2016)
3rd largest export economy in the
world
41st largest export economy in the world
GDP: $3.73 Trillion GDP: $292.451 billion
Global Ranking 4th (GDP) Global Ranking 38th (GDP)
Founding member of the European
union
Member of ASEAN
GDP per capital is $48226 GDP per capital income $2899

3. Banking System
Germany Philippines
Banking History 450 Years
Since 1590
400 years
Since 1610
Central Bank Bundesbank Bangko Sentral ng
Pilippinas
Total Assets $8.06 Trillions $177 Billions
Number of Banks 1804 699
Source : Bundes Bank Source : Bangko sentral ng philipnas

4. Categories & Number of Banks
 ITALY
 Categories
 Number of Banks
 Banks established as SpA
 167
 Cooperative banks
 29
 Mutual banks
 355
 Braches of foreign banks
 84
 Total
 635
Germany
Categories No of Banks
Private
Commercial Banks
273
Public Banks 425
Cooperative Banks 1,049
Special banks 57
Total 1804
Philippines
Categories No of Banks
Universal Banks 36
Commercial Banks 71
Thirft Banks 552
Rural &
Cooperative Banks
40
Total 699
Source : Bundes Bank
Source : Bangko sentral ng philipnas

5. Top Five Banks
Germany
Rank Name Assets (Billions)
1 Deutsche Bank $1778.2
2 Commerzbank $588.9
3 KfwBankgruppe $626.55
4 DZ Bank $427.81
5 HypoVereinsbank $322.63
Total $3.74 Trillions
Philippines
Rank Name Assets(Billions)
1 BDO Unibank Inc. (BDO) $380.8
2 Metrobank $290.2
3 Bank of the Philippine
Islands (BPI)
$240.8
4 Land Bank of the
Philippines
$240
5 Philippine National Bank
(PNB)
$125.79
Total $1.061 Trillions
Source : Bundes Bank Source : Bangko sentral ng philipnas

6. Shares of Banking Assets
38.00%
29.40%
11.80%
20.40%
German Banking Assets
Private Banks
Saving Banks
Cooperative
Banks
Small Purpose
Banks
Source : Bundes Bank
87.00%
10.00% 3%
Philippines Banking Assets
Universal &
Commercial
Bank
Thrift Bank
Rural &
Cooperative
Bank
Source : Bangko sentral ng philipnas

7. Philippines Banking System Composition
60.10%
24.70%
15.10%
Banking Loan
Corporate
Sector
Agri Sector
Consumer
Loan
88.5
9.2
2.3
Banking Industry Deposits
Universal &
Commercial
Thrift Bank
Rural &
Cooperative
Bank
Source : Bangko sentral ng philipnas

8. Domestic Loan to Corporation in Germany
27%
18.40%
15.20%
6.70%
6.30%
5.20%
2.60%
1.80%
1.80%
Bank Loans
Saving Banks
Credit Cooperatives
Landesbanken
Mortgage Bank
Special Purpose Bank
Commerzbank
Deutsche Bank
HVB Group
PostBank
Source: Bundesbank, company data, Scope ratings

9. Market Share to Deposit Liabilities of
Philippines
88.5
9.2
2.3
Banking Industry Deposits
Universal & Commercial
Thrift Bank
Rural & Cooperative Bank

10. Foreign Exchange Reserves
Germany Philippines
Forex Exchange Reserves $173.73 Billions $80.64 Billions

11. Role of Central Bank
Germany Philippines
Monetary policy Liquidity Management
Financial and monetary system Currency issue
Banking supervision Lender of last resort.
Cash management Financial Supervision
Payment systems Management of foreign currency
reserves

12. Financial Crisis
Germany Philippines
Financial Crisis 1931 Nil
Global Financial Crisis 2007-2008 Global Financial Crisis 2007-2008

13. Compliance of Basel Accord in Banking
System
Germany Philippines
Basel I (Implemented 1992)
Minimum Capital Requirement 10%
Basel I (Implemented 2001)
Minimum Capital Requirement 12%
Basel 11 (Implemented 2007)
Capital Adequacy Ratio 10%
Basel II (Implemented 2010)
Capital Adequacy Ratio 17%
Basel III (Implemented 2013)
Leverage Ratio 3%
Basel III (Implemented 2015)
Leverage Ratio 5%

14. Islamic Banking
Germany Philippines
Kuveyt Turk AG Bank
Established on 1st July 2015
Al-Amanah Islamic Investment Bank of
the Philippines
1st Islamic Bank in Germany
Shariah compliant banking services
1st Islamic Bank in Philippines
Established 1973
Owned by Turkish finance group
Kuveyt Turk
Owned by Development Bank of the
Philippines, in 2008

15. Financial Markets
Germany Philippines
Stock Exchange Börse Frankfurt Philippines Stock Exchange
No of Stock Exchange 07 01
Total Market Capitalization $1.716 Trillions $238.83 Billions
Number of Listed Firms 555 262

16. Financial Market & Indices & Supervisory Authority
Germany
1. Frankfurt Stock Exchange
2. Berlin Stock Exchange
3. Dusseldorf Stock Exchange
4. Munich Stock Exchange
5. Stuttgart Stock Exchange
6. Hamburg Stock Exchange
Indices
• DAX(30 companies)
•TecDAX
•MDAX (Mid Cap)
•SDAX (Small Cap)
•NSLA (BIG CAP)
Federal Financial Supervisory
Authority
Philippines
Philippines Stock Exchange
Indices:
PSE Index (PSEi)
Financial Index, Industrial Index, Holding
Firms Index,
Property Index,
Services Index,
Mining & Oil Index, and
Small and Medium Enterprises (SME) Index.
Philippines Securities & Exchange
Commission

17. Blue chip companies of Germany
Germany
Rank Company Sector Market Capitalization
($ billion)
1 BASF SE Chemicals $88.83 Billions
2 Volkswagen Auto Manufacturing $72.15 Billions
3 Siemens Industrial Conglomerates $102.49 Billions
4 Henkel & Co Households Products $47.76 Billions
5 BMW Auto Manufacturing $60.293 Billions
6 Adidas Apparels & Sports Goods $31.877 Billions
7 E.ON Multi-Utilities $13.77 Billions
8 Allianz Insurance $73.943 Billions
9 Deutsche Telekom Telecom $78.151 Billions
10 Linde Chemicals $30.61 Billions

18. Blue Chip Companies of Philippines
Philippines
Rank Company Sectors Market Capitalization
($ billion)
1 Ayala Corporation Telecommunications $7.77 Billions
2 Aboitiz Equity Ventures Investment Company $6.16 Billions
3 Alliance Global Group Food and beverage industry $5.977 Billions
4 Ayala Land Real Estate $6.69 Billions
5 Aboitiz Power Corporation Power Generation $5.39 Billions
6 BDO Unibank Inc Banking $6.69 Billions
7 Bank of Philippines Island Banking $7.15 Billions
8 DMCI Holding Inc Real Estate $3.93 Billions
9 Energy Development Power Generation $2.36 Billions
10 Emperador Inc Beverages $3.5 Billions

19. Ownership structure of listed public limited
companies:
11.80%
29.40%
18.30%
11.10%
57.10%
German Corporate Firms
Households
Institutional
investors
Non-fi nancial
investors
Financial
investors
Non-residents
Source: Deutsche Bundesbank
61%12%
9%
18%
Philippines Corporate Firms
Household
Financial
Investor
Foreigner
Institutional
Investor
Source : Bangko sentral ng philipnas & SECP

20. Foreign Direct Investment
Germany Philippines
FDI (2015) $46.277 Billions $5.83 Billions

21. GDP & Per Capital Income
Germany Philippines
GDP GDP: $3.73 Trillion GDP: $292.451 billion
Per Capital Income $48226 $2899

22. References:
 https://www.ecb.europa.eu/press/key/date/2016/html/sp160127_1.en.html
 http://ec.europa.eu/europe2020/pdf/themes/2015/small_medium_enterprises_access_to_finan
ce_20151126.pdf
 http://www.savings-banks.com/press/latest-news/Pages/EU-US-financing-companies-
study.aspx
 https://www.statista.com/statistics/273085/total-assets-of-german-banks-since-2003/
 http://banksgermany.com/https://www.bundesbank.de/Navigation/EN/Home/home_node.html
 http://www.bsp.gov.ph/about/functions.asp
 https://www.imf.org/External/NP/seminars/eng/2007/fsa/pdf/s2/9_S2_speaker4bgp.pdf
 http://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS?locations=PH
 https://www.bloomberg.com/quote/DTEGY:US

23. Thank You