VIII. Trade and Project Financing

Germany has a modern, fully-developed financial infrastructure.
Germany's universal banking system allows the country's more than
45,000 bank offices not only to take deposits and make loans to
customers, but also to trade in securities; German banks exert
substantial influence on industry through their shareholdings.
Private banks control roughly 30 percent of the market, while
publicly-owned savings banks controlled by state and local
governments account for 50 percent of banking turnover, and
cooperative banks make up the balance.  All three types of banks
offer essentially the same, full range of services to their
customers.  An array of specialist banks finance homeowner
mortgages, provide guarantees to small and medium-sized
businesses, finance projects in disadvantaged regions in Germany
and guarantee exports to developing countries

Practices regarding financing procedures, availability of capital
and schedules of payment are comparable to those which prevail in
the United States.  There are no restrictions or barriers on the
movement of capital, foreign exchange earnings or dividends.
Virtually all major U.S. banks are represented in the German
market, principally but not exclusively in the city of Frankfurt
am Main, Germany's main financial center.  A large number of
German banks similarly maintain subsidiaries, branches and/or
representative offices in the United States.  Germany's "big
three" private banks are Deutsche Bank, Dresdner Bank and
Commerzbank.

Deutschmark/Dollar Exchange Rates


1992:          1.5595

1993:          1.6544