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Mortgage banks
Among those banks in Germany, which provides a specialized range of banking services rather than universal services, the most important group consists of the mortgage banks. They may be own by either public or private sector. The laws in Germany generally limit mortgage banks to making long term mortgage loans and loans to municipalities and other public authorities. These banks finance through bonds and long term deposits. Most private mortgage banks are usually owned by commercial banks, which are interested to enter into this market.
Banks with specialized functions
The group of banks with special functions comprises various public and private institutions, which have been formed to offer specialized banking services. Their share in total volume of banking business in Germany has been in the range of 10%-12%.
These banks generally provide loans finance such as export finance, finance of projects in less developed countries, environmental programs and loans to small and medium sized German firms. These banks finance through government funds, bank loans and other sources such as bond issues etc.
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