Consumer Credit in Germany 2006

• Covers the consumer credit market (not including any loans secured on property)
• Provides market sizing data in terms of gross advances and balances outstanding
• Provides competitor market share for the top five players in terms of balances outstanding; a short profile of the top players is also provided
• Provides competitor market share for the top five credit card lenders in terms of balances outstanding

• Learn how the German consumer credit market has developed over the last five years
• Understand the recent developments in the market in terms of regulation, competition and product innovations
• Find out Datamonitor's opinion on the future performance of the German consumer credit market over the next five years and its future prospects

OVERVIEW

Market Size

Future Growth Indicators

Key market players

CHAPTER 1 INTRODUCTION

What is this report about?

Scope of the report

Structure of report

CHAPTER 2 MARKET CONTEXT

Country overview

Economy

GDP

Inflation

Distribution of income

Segmentation of liquid assets

Unemployment

Demographics

Market structure

Private commercial banks

Private commercial banks mainly concentrate on corporate banking rather than retail banking

Sparkassen Group (savings banks)

Volks- und Raiffeisenbanken (co-operative banks)

Market size

Total consumer credit

Gross advances

Balances outstanding

Consumer credit as a proportion of total retail lending

Consumer credit as a proportion of GDP

Consumer credit balances outstanding per capita

Consumer credit product statistics

Consumer credit gross advances by product

Consumer credit balances outstanding by product

Regulatory environment

Industry regulators

Bundesbank

BaFin

Industry associations

Zentraler Kreditausschuss - ZKA

Deutsche Sparkassen- und Giroverband - DSGV (German savings banks association)

Bundesverband Deutscher Banken - German Bankers' Association

Bundesverband der Deutschen Volksbanken und Raiffeisenbanken - BVR

Bundesverband Öffentlicher Banken Deutschlands - VÖB

Hypothekenverband (VDH)

Verband der privaten Bausparkassen

Bankenfachverband

Ver.di

Credit bureaux

Regulatory issues in the market

European consumer credit directive

Private commercial banks are not allowed to acquire Sparkassen under current legislation.

Landesbanken lose state guarantees

A change to the way the maximum interest rate is calculated has caused confusion for German lenders

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institute

Consumer credit market shares by competitor

The Sparkassen Group remains the largest lender in Germany

Profiles of the top five consumer credit providers

The Sparkassen Group

Citibank

Deutsche Bank

Dresdner Bank

Norisbank

Top five credit card lenders

Market share by balances outstanding

Competitor developments

Consolidation of the German retail banking market

Most recently, Commerzbank announced it is to take control of Eurohypo

Chancellor Schroeder has called for German banks to remain competitive through consolidation

New entrants to the German retail banking market

Non-traditional players are an important part of the German financial services market

Cetelem has strengthened its partnership with Dresdner Bank

Product analysis

Typical interest rates for personal loans

DKB offers competitive personal loan rates

Product innovations in the market

Germany's Bausparkassen are not following the Austrian lead

easyCredit personal loans are especially innovative

Distribution

Growth in Internet banking in Germany has been slow in 2005

Germans are still keen to use branches

Norisbank has set up personal loan 'shops'

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN GERMANY

Forecasting gross advances

Gross advances in the German consumer credit market will reach €96.6 billion in 2010

A number of factors will determine this growth

Future prospects

Strengths

Weakness

Opportunities

Threats

CHAPTER 5 APPENDIX

Supplementary data

Definitions

Forecasting methodology

Research methodology

Relevant readings

Datamonitor's custom research capabilities

Retail Banking Team contact details

How to contact experts in your industry

List of Tables

Table 1: Consumer credit gross advances and balances outstanding in Germany, 2001-2005

Table 2: GDP per capita for selected European countries, 2005

Table 3: Inflation in selected European countries, 2005

Table 4: GINI Coefficient for selected European countries

Table 5: Segmentation of liquid assets, 2004

Table 6: Consumer credit balances outstanding compared to GDP of selected European countries, 2005

Table 7: Consumer credit balances outstanding per capita of selected European countries, 2005

Table 8: A comparison of effective interest rates for a €5,000 unsecured personal loan taken out over a five year period in Germany, December 2005

Table 9: Interest rates for a €10,000 loan from DKB, December 2005

Table 10: Forecast of consumer credit gross advances in the German market, 2004-2010f

Table 11: GDP at current rates across major European countries , 2005

Table 12: Real GDP growth rates, 2001-2005

Table 13: GINI Coefficient for selected European countries

Table 14: Population numbers and demographic splits in Germany and other major European countries, 2005

Table 15: The percentage of people over the age of 20 in the major European countries, 2005

Table 16: Unemployment in Germany, 2005

Table 17: Consumer credit gross advances in Germany, 2001-2005

Table 18: Consumer credit balances outstanding in Germany, 2000-2005

Table 19: Consumer credit as a proportion of total retail lending in Germany, 2001-2005

Table 20: Market shares of consumer credit gross advances by product in Germany, 2004

Table 21: Market shares of consumer credit balances outstanding by product in Germany, 2004

Table 22: Market share of total consumer credit balances outstanding for the top five German consumer credit providers, 2004

Table 23: Market shares of credit card balances outstanding of the top five German credit card providers, 2004

List of Figures

Figure 1: Gross advances in the Germany consumer credit market will grow at a CAGR of 2.6 per cent to reach €96.6 billion in 2010, 2001e-2010f

Figure 2: The Sparkassen is the leading consumer credit provider in Germany, 2004

Figure 3: Key statistics for the German consumer credit market, 2005

Figure 4: Germany has the highest GDP in Europe, 2005

Figure 5: While the economic situation in Germany has now improved, GDP growth between 2001 and 2005 depicts the dire state of the German economy in recent years, 2001-2005

Figure 6: The German economy is dominated by the services sector, 2005

Figure 7: Unemployment in Germany has been on the rise, 2001-2005

Figure 8: Germany has the highest population among the major European countries, 2005

Figure 9: Germany has the fourth highest percentage of population over the age of 20 after Italy, Spain and Greece 2005

Figure 10: The three pillars of German banking, 2005

Figure 11: Banking groups in the three pillars, 2005

Figure 12: There was a fall in new lending in the German consumer credit market in 2005, 2001-2005e

Figure 13: There was a fall in consumer credit balances outstanding in 2005 in Germany, 2001-2005

Figure 14: Mortgages are the dominant retail lending product in Germany, 2001-2005e

Figure 15: Personal loans account for over half of consumer credit in terms of gross advances in Germany, 2004

Figure 16: Personal loans account for well over half of the total German consumer credit market on a measure of balances outstanding, 2004

Figure 17: Regulatory overview of Germany, 2005

Figure 18: Banks in Germany have the major share of the consumer credit market, 2004

Figure 19: The Sparkassen Group is the leading consumer credit provider in France, 2004

Figure 20: Barclaycard Deutschland is the leading credit card lender in Germany, 2004

Figure 21: Overview of the main mergers and acquisitions in Germany in recent years, 1998-2005

Figure 22: While the German consumer credit market is expected to return to growth in 2006, the market will continue to struggle, 2001-2010f

Figure 23 Datamonitor's core consulting capabilities 79