And the last few years have taught us that foreign banks with roots in the real sector are unlikely to pull out in times of financial crisis. Integrated financial markets per se enhance economic growth and our prosperity. Foreign banks in Germany constitute a part of this financial market integration.
The downside of integration is that market players are much more interconnected, which means that crises spill over more quickly from one country to another. This can lead to dislocations. However, that is simply the reality of today’s financial world. 3  Capital: the key to greater trust  Having, or building up, sufficient capital is essential, particularly in the current climate.