A financial institution , sometimes called a banking institution , is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institution:
101-650: The Commerzbank Aktiengesellschaft (shortly known as Commerzbank AG or Commerzbank ) is a European banking institution headquartered in Frankfurt am Main , Hesse, Germany. It offers services to private and entrepreneurial customers as well as corporate clients. The Commerzbank Group also includes the German brand Comdirect Bank and the Polish subsidiary mBank . As one of the oldest banks in Germany, Commerzbank plays
202-524: A Braille representation of the notes denomination), colour-shifting ink (on the DM ;500 and DM 1000 denominations), a see-through registration device and ultraviolet-visible security features. First to be issued were the DM 100 and DM 200 denominations on 1 October 1990 (although the banknote shows " Frankfurt am Main , 2. Januar 1989"). The next denomination was DM 10 on 16 April 1991, followed by DM 50 on 30 September 1991. Next
303-728: A colorless inorganic oxide mixture applied to the security thread. Banknotes featuring that were designated BBk Ia within the Bundesbank. All banknotes of the third series bore the penalty for counterfeiting and forgery on the upper right corner of the reverse, from German penal code section 146: " Wer Banknoten nachmacht oder verfälscht, oder nachgemachte oder verfälschte sich verschafft und in Verkehr bringt, wird mit Zuchthaus/Freiheitsstrafe nicht unter zwei Jahren bestraft. " ("Who falsifies or counterfeits banknotes, or procures falsified or counterfeit banknotes and releases them into circulation,
404-400: A disastrous foray into investment banking in the first half decade of the 2000s and eventually shut down its Commerzbank Securities investment banking unit run by Mehmet Dalman and Roman Schmidt after Chairman Klaus-Peter Müller labelled it a "problem child" and a review by consulting firm Mercer Oliver Wyman which concluded that Commerzbank Securities lacked a viable business model. What
505-409: A financial conglomerate with a building society and insurance, ultimately did not materialize. The bank managed to increase its customer base significantly. With fewer branches, it generated more profit. At the same time, innovative new services were created, such as cash withdrawal at gas stations and online banking for corporate customers. The public critically received the outsourcing of employees to
606-452: A greatly expanded market for German exports. Overnight, consumer goods appeared in the stores, because they could be sold for higher prices. While the availability of consumer goods is seen as a giant success story by most historians of the present, the perception at the time was a different one: prices were so high that average people could not afford to shop, especially since prices were free-ranging but wages still fixed by law. Therefore, in
707-583: A heavily regulated environment because they are critical parts of countries' economies, due to economies' dependence on them to grow the money supply via fractional-reserve banking . Regulatory structures differ in each country, but typically involve prudential regulation as well as consumer protection and market stability. Some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers. Countries that have separate agencies include
808-441: A joint mortgage bank. Eurohypo commenced its business operations in the second half of 2002. Following the dot-com bubble 's collapse and subsequent turmoil in financial markets, Commerzbank had to make significant write-downs on its stake as early as 2003. For a time, the major shareholders even waived their dividends to improve the financing of Eurohypo. Eurohypo distanced itself from Commerzbank. An initial public offering (IPO)
909-707: A major national bank with over 280 branches in Germany. After the hyperinflation in 1924 , German banking institutions were required to present a Goldmark opening balance sheet. The Commerz- und Privat-Bank valued its capital of 700 million Marks at 42 million Goldmarks. In the following years, the economic situation improved. In 1927, the bank opened a foreign representation in New York City and continued its expansion. In 1929, it merged with Mitteldeutsche Creditbank from Frankfurt am Main to extend its branch network in Hesse and Thuringia. In 1931, several banks, including
1010-778: A mint mark, indicating where the coin was minted. D indicates Munich, F Stuttgart, G Karlsruhe and J Hamburg. Coins minted during the Second World War include the mint marks A (Berlin) and B (Vienna). The mint mark A was also used for German mark coins minted in Berlin beginning in 1990 following the reunification of Germany. These mint marks have been continued on the German euro coins . Between 1 July 1990 (the currency union with East Germany ) and 1 July 1991, East German coins in denominations up to 50 pfennig s continued to circulate as Deutsche Mark coins at their face value, owing to
1111-434: A radical austerity program, which included limiting credit outside Germany and Poland. By selling Cominvest to Allianz, Commerzbank no longer owned its own fund company. Additionally, Eurohypo was to be sold or split up. Write-downs on government bonds and real estate loans continuously led to losses, making the company no longer viable. Therefore, in 2012, the bank ultimately decided on a wind-down, accepting further losses in
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#17327720829341212-599: A rate of 1:1 for the first M 4,000 and 2:1 for larger amounts. Before reunification, each citizen of East Germany coming to West Germany was given Begrüßungsgeld (welcome money), a per capita allowance of DM 100 in cash. The government of Germany and the Bundesbank were in major disagreement over the exchange rate between the East German mark and the German mark. France and the United Kingdom were opposed to German reunification, and attempted to influence
1313-549: A rather short life. While previously damaged notes could be replaced from reserve stocks, this stock was also coming to an end, necessitating a reprint. Typical security features at the time were guilloches, a multi-level head watermark and a security thread. Note numbers that fluoresced under UV light and green, yellow, and blue. 27 fluorescent fibers embedded in the paper appeared on most banknotes; however, some specimens without these features were in circulation. Starting in 1976, banknotes were equipped with machine-readable feature -
1414-759: A signal for consolidation in the European financial industry. Two years later, a tri-national cooperation was established between the German Commerzbank, the British National Westminster Bank , and the French Société Générale . In 1994, Commerzbank founded Comdirect Bank , becoming the first major German bank to enter the emerging direct banking market. 1999, Commerzbank also sold computers to facilitate customers' access to online banking. The branch network
1515-495: A significant role in the country's economy. It is the largest financier of German foreign trade, with strong ties to the German 'Mittelstand.' In addition, it maintains a presence in all major economic and financial centers worldwide. Since its establishment in 1870, Commerzbank has undergone several changes. It was the first German banking institution to open an operational branch in New York City in 1971. Another milestone
1616-540: A small number of D-Mark coins or bills, e.g. Gib mir mal ein paar Märker ("Just give me a few marks") and Die lieben Märker wieder ("The lovely money again", with an ironic undertone). The subdivision unit is spelled Pfennig ( masc. ; [ˈpfɛnɪç] ), which unlike Mark does have a commonly used plural form: Pfennige ( [ˈpfɛnɪɡə] ), but the singular could also be used instead with no difference in meaning. (e.g.: ein (one) Pfennig , dreißig (thirty) Pfennige or dreißig (thirty) Pfennig ). The official form
1717-618: A temporary employment agency. After acquiring stakes in numerous foreign banks and insurance companies during the 1990s, Commerzbank bought around 30 percent of the Korea Exchange Bank in 1998 to more actively participate in developing emerging Asian markets. Despite the continent's financial market problems, the bank saw opportunities for above-average growth. Alongside international expansion, Commerzbank focused on strengthening its European presence, mainly through alliances with other large banks. Commerzbank suffered reversals in
1818-410: A temporary shortage of small coins. These coins were legal tender only in the territory of the former East Germany. In colloquial German the 10pf coin was sometimes called a groschen (compare: groat ). Likewise, sechser ('sixer') could refer to a coin of 5pf. Both colloquialisms refer to several pre-1871 currencies of the previously independent states (notably Prussia ), where a groschen
1919-600: A trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served. This is why a target of the United Nations Sustainable Development Goal 10 is to improve the regulation and monitoring of global financial institutions and strengthen such regulations. Standard Settlement Instructions (SSIs) are
2020-539: Is compared to other currencies, as in its 53-year history, the purchasing power of the German mark was reduced by over 70%. The first Deutsche Mark coins were issued by the Bank deutscher Länder in 1948 and 1949. From 1950, the inscription Bundesrepublik Deutschland (Federal Republic of Germany) appeared on the coins. These coins were issued in denominations of 1pf, 2pf, 5pf, 10pf, and 50pf. The 1pf and 2pf coins were struck in bronze clad steel (although during some years
2121-500: Is intended for circulation. Commemorative silver DM10 coins have also been issued which have periodically found their way into circulation. Unlike other European countries, Germany retained the use of the smallest coins (1pf and 2pf) until adoption of the euro. denomination below denomination below The weights and dimensions of the coins can be found in an FAQ of the Bundesbank . Unlike other countries (such as Australia) there
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#17327720829342222-833: Is liable to imprisonment for at least two years". The third series banknotes entered circulation on 10 February 1961, with the DM 20 note. DM 100 and DM 50 followed next year, and DM 5 and DM 10 in 1963. High-denomination DM 1000 and DM 500 followed in 1964 and 1965, respectively. The banknotes were printed exclusively in West Germany; in Bundesdruckerei in West Berlin and in Giesecke+Devrient in Munich . The third series banknotes ceased to be legal tender on 30 June 1995, when
2323-552: Is part of a proper name, while the noun "Mark", like all German nouns, is always capitalized. The English loanword "Deutschmark" has a slightly different spelling and one syllable fewer (possibly due to the frequency of silent e in English, or due to English's lack of adjectival endings), and a plural form in -s . In Germany and other German speaking countries, the currency's name was often abbreviated as D-Mark ( fem. , [ˈdeːmaʁk] ) or simply Mark ( fem. ) with
2424-609: The Deutsche Bundesbank . The Deutsche Mark earned a reputation as a strong store of value at times when other national currencies succumbed to periods of inflation . It became a source of national pride and an anchor for the country's economic prosperity, particularly during the years of the Wirtschaftswunder in the 1950s. The population in the Saar Protectorate rejected in a referendum
2525-489: The Financial Supervisory Authority of Norway , Germany with Federal Financial Supervisory Authority and Russia with Central Bank of Russia . Merits of raising funds through financial institutions are as follows: Deutsche Mark The Deutsche Mark ( German: [ˈdɔʏtʃə ˈmaʁk] ; "German mark "), abbreviated " DM " or " D-Mark " ( [ˈdeːˌmaʁk] ),
2626-706: The French franc . On 9 July 1959 the Deutsche Mark replaced the Saar franc at a ratio of 100 francs = DM 0.8507. The Deutsche Mark played an important role in the reunification of Germany. It was introduced as the official currency of East Germany in July 1990, replacing the East German mark ( Mark der DDR ), in preparation for unification on 3 October 1990. East German marks were exchanged for Deutsche Marks at
2727-659: The German gold mark was based on gold rather than silver (at 2.79 marks per gram of fine gold), a fixed exchange rate between the Vereinsthaler and the mark of 3 marks = 1 Vereinsthaler was used for the conversion. The first mark, known as the Goldmark , was introduced in 1873. With the outbreak of World War I , the mark was taken off the gold standard. The currency thus became known as the Papiermark , especially as high inflation , then hyperinflation occurred and
2828-673: The London Stock Exchange . In 1952, it opened its representation in Rio de Janeiro. Further locations followed, including Madrid (1953), Amsterdam (1955), Beirut (1957), Johannesburg (1958), Tokyo (1961), and New York City (1967). The 1970s and 1980s were characterized by international cooperation and global expansion. Commerzbank participated in numerous new ventures and equity investments abroad. In 1970, it collaborated with Crédit Lyonnais , which other banks from various European countries joined. In this context, Commerzbank introduced
2929-585: The Nazi dictatorship , the bank adapted to the political imperative without pursuing excessive expansion. In November 1932, the Commerz- und Privatbank chief executive Friedrich Reinhart and chairman Franz Heinrich Witthoefft were among the signatories of the Industrielleneingabe petition of business leaders that advised president Paul von Hindenburg to appoint Adolf Hitler as chancellor. After
3030-632: The Ostmark —literally Eastmark ) was introduced a few days afterwards in the form of Reichsmark and Rentenmark notes with adhesive stamps to stop the flooding in of Reichsmark and Rentenmark notes from the West. In July 1948, a completely new series of East German mark banknotes was issued. Later in 1948, the Bank deutscher Länder ("Bank of the German States") assumed responsibility, followed in 1957 by
3131-649: The Soviet Union to stop it. However, in late 1989 France extracted German commitment to the Monetary Union in return for support for German reunification. The German mark had a reputation as one of the world's most stable currencies; this was based on the monetary policy of the Bundesbank . The policy was "hard" in relation to the policies of certain other central banks in Europe. The "hard" and "soft"
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3232-880: The United States , where the key governing bodies are the Federal Financial Institutions Examination Council (FFIEC), Office of the Comptroller of the Currency – National Banks, Federal Deposit Insurance Corporation (FDIC) State "non-member" banks, National Credit Union Administration (NCUA) – Credit Unions, Federal Reserve (Fed) – "member" banks, Office of Thrift Supervision – National Savings & Loan Association, State governments each often regulate and charter financial institutions. Countries that have one consolidated financial regulator include: Norway with
3333-408: The 'Quatre Vents' logo in 1972, which it used until mid-2010. In the 1970s, Eurocheques were introduced. Customers could now withdraw cash in 30 European countries using a cheque card. The Eurocheque card with a magnetic strip for ATMs was introduced in 1981. In 1970, Commerzbank founded the non-profit Commerzbank Foundation. As an independent foundation of civil law, it aims to promote and support
3434-425: The 'small loan for everyone' in 1959. Additionally, Commerzbank entered the private customer home financing market in 1968. In 1969, Commerzbank recorded more than one million private customers for the first time. The 1950s and 1960s also marked the beginning of the financial sector's internationalization. Commerzbank was particularly active in this area. Its shares were the first German financial institution listed on
3535-451: The 2pf was issued in solid bronze) while 5pf and 10pf were brass clad steel and the 50-pfennig was in cupronickel . In 1950, cupronickel DM1 coins were released, while a cupronickel DM2 and a .625 silver DM5 were released in 1951. Cupronickel replaced silver in the DM5 in 1975. The DM2 and DM5 coins have often been used for commemorative themes, though typically only the generic design for the DM5
3636-532: The Allies each zone was governed independently as regards monetary matters. The US occupation policy was governed by the directive JCS 1067 (in effect until July 1947), which forbade the US military governor "to take any steps to strengthen German financial structure". As a consequence a separate monetary reform in the U.S. zone was not possible. Each of the Allies printed its own occupation currency . The Deutsche Mark
3737-735: The American military government, Commerzbank was split into nine regional successor institutions. Normal business operations were practically impossible as trust in the Reichsmark declined. The German currency reform 1948 [ de ] and the introduction of the Deutsche Mark marked a new beginning for Commerzbank. In 1949, the Allies and the Berlin Magistrate resumed banking operations in West Berlin. In 1952,
3838-403: The Bundesbank decided to issue a new series of Deutsche Mark banknotes. The colours for each denomination remained unchanged from the previous series but the designs underwent significant changes and a DM 200 denomination was introduced. Famous national artists and scientists were chosen to be portrayed on the new banknotes. Male and female artists were chosen in equal numbers. The buildings in
3939-438: The Bundesbank in Germany. Banknotes and coins can even be sent to the Bundesbank by mail. In 2012, it was estimated that as many as 13.2 billion marks were in circulation, with one poll from 2011 showing a narrow majority of Germans favouring the currency's restoration (although only a minority believed this would bring any economic benefit). Polls in the early 2020s indicated only a minority of Germans supported reintroduction of
4040-546: The Commerz- und Privat-Bank, faced difficulties during the currency and banking crisis. In February 1932, the Reich government merged the Commerz- und Privat-Bank with the Barmer Bankverein [ de ] and partially nationalized it to stabilize the institution. The bank was 70 percent controlled by the Reich and the state-owned Golddiskontbank. Its shares were sold back to private shareholders in 1937. During
4141-623: The DM 5 coin used to be also called a Heiermann , whereas in Bavaria the DM 2 coin was called Zwickl and this expression is now used for the €2 coin in the region. There were four series of German mark banknotes: The notes with a value greater than DM 200 were rarely seen. A reserve series (BBk II) was commissioned on 1 July 1960, consisting of DM 10, DM 20, DM 50 and DM 100 banknotes. 670 million BBk II banknotes in value of 25 billion marks were printed. The notes were printed between 1963 and 1974 in fear if
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4242-596: The Deutsche Mark. A mark had been the currency of Germany since its original unification in 1871. Before that time, the different German states issued a variety of different currencies, the most common being the North German thaler and the South German gulden . By 1857, both currencies were linked to the Vereinsthaler , a silver coin containing 16 + 2 ⁄ 3 grams of pure silver. Although
4343-589: The Düsseldorf Commerzbank-Bankverein acquiring the two sister institutions. The newly founded banking institution was registered under its traditional name in the Düsseldorf commercial register on November 4, 1958. From 1958, banks were allowed to open branches without official review, which Commerzbank utilized. By 1962, it had surpassed its pre-war level with 372 branches. Commerzbank, Deutsche Bank , and Dresdner Bank introduced
4444-550: The Eastern Bloc would start systematically counterfeiting the BBk I series of banknotes to cripple the economy, then they would quickly be replaced by emergency notes. Another reserve series for West Berlin (BBk IIa) was commissioned on 1 July 1963, consisting of DM 5, DM 10, DM 20, DM 50 and DM 100 banknotes. 115 million West Berlin banknotes were printed, total value 4 billion marks. 15 billion marks worth of
4545-584: The Federal Republic of Germany's official currency from its founding the following year. On 31 December 1998, the Council of the European Union fixed the irrevocable exchange rate, effective 1 January 1999, for German mark to euros as DM 1.95583 = €1. In 1999, the Deutsche Mark was replaced by the euro; its coins and banknotes remained in circulation, defined in terms of euros, until
4646-470: The German financial industry. Allianz valued the purchase price at around 9.8 billion euros, assuming loss risks of up to 975 million euros. In the first step, Commerzbank was to acquire about 60 percent of Dresdner Bank, with plans to buy the remaining shares later. This was the largest merger of two financial institutions in years. Commerzbank and Dresdner Bank both expected to realize millions in synergies. Although Allianz initially rejected renegotiations,
4747-476: The Nazis, and which the Allies had not removed. He did this, as he often confessed, on Sunday because the offices of the American, British, and French occupation authorities were closed that day. He was sure that if he had done it when they were open, they would have countermanded the order. The introduction of the new currency was intended to protect western Germany from a second wave of hyperinflation and to stop
4848-453: The U.S. and Britain launched an airlift of food and coal and distributed the new currency in West Berlin as well. Since the 1930s, prices and wages had been controlled, but money had been plentiful. That meant that people had accumulated large paper assets, and that official prices and wages did not reflect reality, as the black market dominated the economy and more than half of all transactions were taking place unofficially. The reform replaced
4949-737: The West German regional groups merged into three successor institutions. This led to the formation of the Commerz- und Disconto-Bank in Hamburg, the Bankverein Westdeutschland in Düsseldorf, and the Commerz- und Credit-Bank in Frankfurt am Main. In 1956, the legal situation allowed the merger of these institutions into Commerzbank Aktiengesellschaft. This merger was completed in October 1958, effective from July 1, 1958, with
5050-474: The accelerated reduction of its portfolio. The decade following the takeover and integration of Dresdner Bank brought further profound changes for Commerzbank caused by the digitalization of all areas of public life. In response, Martin Zielke , who became CEO in 2016, announced a radical restructuring. Commerzbank mainly aimed to strengthen its private and corporate customer business in Germany further. The focus
5151-716: The acquisition of Schmidt Bank [ de ] based in Hof, gaining 70 branches and 29 other locations in Bavaria, Thuringia, and Saxony, increasing its private customer base by 360,000 to 4.3 million. The transaction was seen as rejecting a merger with the Bavarian HypoVereinsbank . In addition to digital activities and growth in the domestic market, especially among corporate clients, Commerzbank explored various acquisitions in Central and Eastern Europe. With
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#17327720829345252-462: The advance of forgery technology, the Bundesbank decided to introduce additional security features on the most important denominations (DM 50, DM 100 and DM 200) as of 1996. These were a hologram foil in the center of the note's obverse, a matted printing on the note's right obverse, showing its denomination (like on the reverse of the new euro banknotes ), and the EURion constellation on
5353-501: The agreements between two financial institutions which fix the receiving agents of each counterparty in ordinary trades of some type. These agreements allow the related counterparties to make faster operations since the time used to settle the receiving agents is conserved. Limiting each subject to an SSI also lowers the likelihood of a fraud . SSIs are used by financial institutions to facilitate fast and accurate cross-border payments. Financial institutions in most countries operate in
5454-554: The assets of emigrated, deported, and deceased Jews to the German Reich. In 1940, the bank changed its name to Commerzbank Aktiengesellschaft. During World War II , it opened branches and subsidiaries in occupied countries and took over the Dutch bank Hugo Kaufmann. This expansion served economic interests. Shortly before the end of the war, the bank moved its central administration from Berlin to Hamburg for security reasons. With
5555-495: The background of the notes' obverses had a close relationship to the person displayed (e.g., place of birth, place of death, place of work), as well as the second background picture (Lyra and the musician Schumann). The reverses of the notes refer to the work of the person on the obverse. The new security features were: a windowed security thread (with the notes' denominations in microprinting), watermarks, microprinting, intaglio printing (viewing-angle dependent visibility as well as
5656-566: The banknotes were held in Bundesbank's custom-built underground bunker in Cochem in Rheinland-Pfalz , the rest was stored in Bundesbank's vault in Frankfurt . In 1957, with Bank deutscher Länder and the states' central banks merging to form the Bundesbank, new banknotes were being designed, as "Bank deutscher Länder" on the previous series was no longer correct. The previous series' notes had been made out of less durable paper and had
5757-636: The board in 1990, led the department responsible for preparing business in the new federal states. The bank's engagement in the East developed into a crucial advantage. Alongside expansion in the domestic market, Commerzbank continued its internationalization, such as by opening an office in Bangkok. Later, Commerzbank became the first international financial institution to open a branch in South Africa. Commerzbank established its management consultancy to meet
5858-488: The complete takeover of Eurohypo after agreeing on terms for acquiring shares from Deutsche Bank and Dresdner Bank. This step elevated Commerzbank to the second-largest bank in Germany. Observers described the surprising acquisition as a strategic coup, especially in competition with domestic rivals. To finance the acquisition, the bank conducted a capital increase. Even after the takeover, Eurohypo remained largely independent. The real estate business became an essential pillar of
5959-582: The currency became exclusively made up of paper money. The Papiermark was replaced by the Rentenmark (RM) from 15 November 1923, and the Reichsmark (ℛ︁ℳ︁) in 1924. During the first two years of occupation the occupying powers of France, United Kingdom, United States, and the Soviet Union were not able to successfully negotiate a possible currency reform in Germany. Due to the strains between
6060-405: The demand for professional support. In the early 1990s, Commerzbank significantly increased its earnings. However, the stock price remained comparatively low, leading to cost reductions and job cuts. This further improved the profit situation. Commerzbank then promised its shareholders a higher dividend. In 1991, a cross-border collaboration with the French Crédit Lyonnais was announced, seen as
6161-433: The different interests of all parties into a familiar concept. A critical factor was also the conflict over the valuation of Commerzbank and Dresdner Bank. Additionally, a cross-border merger was considered more sensible. Both banks emphasized their independence. In the context of the global economic and financial crisis, there were renewed speculations in 2008 about the merger of Commerzbank with other banks. Initially, there
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#17327720829346262-490: The economy. The currency reforms were simultaneous with the $ 1.4 billion in Marshall Plan money coming in from the United States, which primarily was used for investment. In addition, the Marshall plan forced German companies, as well as those in all of Western Europe, to modernize their business practices, and take account of the wider market. Marshall plan funding overcame bottlenecks in the surging economy caused by remaining controls (which were removed in 1949), and opened up
6363-412: The end of 2008, Commerzbank utilized the Special Fund for Financial Market Stabilization ( SoFFin ). After the German federal government and the European Commission agreed on the assistance details, Commerzbank received a silent participation of 8.2 billion euros. Initially, Commerzbank emphasized that the state's participation was necessary due to the devaluation of banks and not specifically because of
6464-425: The end of World War II in 1945 and the division of Germany into four occupation zones, the Commerzbank lost its branches and subsidiaries in the Soviet occupation zone and East Berlin. Nearly 45 percent of the branches there were closed and expropriated without compensation. Large banks were dismantled in the Western occupation zones, and their business activities were limited to one occupation zone. In 1947, by order of
6565-555: The evolution of its business model. On February 26, 1870, Theodor Wille [ de ] , a merchant successful in South American trade, together with other trading houses and private bankers in Hamburg , founded the Commerz- und Diskonto-Bank. The goal was to provide financial resources to Hamburg's trade and facilitate international commerce. They also established the subsidiary London and Hanseatic Bank in London. The bank expanded and had branches in Berlin and Frankfurt am Main. After several mergers and acquisitions, it evolved into
6666-400: The fourth series notes had been in circulation for 3–5 years. There were a total of five issues of the third series, main differences being the dates, and signatures of the Presidents and Vice Presidents of Bundesbank: The design of German banknotes remained unchanged during the 1960s, 1970s and 1980s. During this period, forgery technology made significant advances and so, in the late 1980s,
6767-490: The general meeting approved the measure. As a result of the financial crisis and partial nationalization, the bank lost public trust. At the end of 2012, the bank launched an advertising campaign in which it openly admitted past mistakes and positioned itself as a fair and competent financial service provider. This was met with criticism in the industry. The Greek debt crisis and its global impact unexpectedly heavily affected Commerzbank's profitability. The bank responded with
6868-462: The group. As early as the early 2000s, there were rumors about a merger of Commerzbank with another major European financial institution. After the failed merger of Deutsche Bank with Dresdner Bank, Commerzbank was considered the most likely candidate for acquiring Dresdner Bank. Such discussions started around June 2000. The possibilities discussed included the formation of a large financial conglomerate, possibly involving Allianz. Trade unions viewed
6969-549: The introduction of euro notes and coins on 1 January 2002. The Deutsche Mark ceased to be legal tender immediately upon the introduction of the euro—in contrast to the other eurozone states, where the euro and legacy currency circulated side by side for up to two months. Mark coins and banknotes continued to be accepted as valid forms of payment in Germany until 1 March 2002. The Deutsche Bundesbank has guaranteed that all German marks in cash form may be changed into euros indefinitely, and one may do so in person at any branch of
7070-414: The latter term also often used in English. Like Deutsche Mark , D-Mark and Mark do not take the plural in German when used with numbers (like all names of units), the singular being used to refer to any amount of money (e.g. eine (one) Mark and dreißig (thirty) Mark ). Sometimes, a very colloquial plural form of Mark , Märker [ˈmɛʁkɐ] was used either as hypocoristic form or to refer to
7171-418: The leadership of Walter Seipp. In 1990, Commerzbank moved its registered office from Düsseldorf to Frankfurt am Main. The German reunification allowed Commerzbank to tap into new target groups; in the first three months after the Economic, Monetary and Social Union of Germany [ de ] , around 80,000 customers and thousands of corporate clients chose the bank. Klaus-Peter Müller , appointed to
7272-607: The majority takeover of Poland's BRE Bank (today's mBank) in 2003, it significantly expanded its regional engagement. Moreover, Commerzbank grew in smaller markets, such as in Romania. Revenues from Central and Eastern Europe were expected to grow significantly. Furthermore, Commerzbank relocated back-office activities, such as IT systems, to Poland and the Czech Republic. In 2001, the three major Frankfurt banks, Deutsche Bank, Dresdner Bank, and Commerzbank, decided to establish
7373-477: The merger of Commerzbank and Dresdner Bank critically in light of potential job cuts, as did the investment company Cobra, which held stakes in both financial institutions. On the other hand, Generali , the Italian finance and insurance conglomerate and another major shareholder of Commerzbank, explicitly expressed positive views on the plans. Ultimately, the plans failed because it was impossible to bring together
7474-410: The note's reverse. Furthermore, the colours were changed slightly to hamper counterfeiting. The German name of the currency is Deutsche Mark ( fem. , German pronunciation: [ˈdɔʏtʃə ˈmaʁk] ); its plural form in standard German is the same as the singular. In German, the adjective "deutsche" (adjective for "German" in feminine singular nominative form) is capitalized because it
7575-406: The old money with the new Deutsche Mark at the rate of one new per ten old. This wiped out 90% of government and private debt, as well as private savings. Prices were decontrolled, and labor unions agreed to accept a 15% wage increase, despite the 25% rise in prices. The result was the prices of German export products held steady, while profits and earnings from exports soared and were poured back into
7676-444: The parties agreed to reduce the purchase price to 5.5 billion euros. It was also decided to move the takeover from the second half of 2009 to the beginning of the year. Analysts and investors criticized the merger of Commerzbank and Dresdner Bank amid the global economic and financial crisis. The transaction significantly affected the stock prices of all involved companies. Due to the credit risks of Dresdner Bank that became apparent at
7777-583: The proposal to turn it into a "European territory". Despite French pre-referendum claims that a "no" vote would mean that the Saar would remain a French protectorate it in fact resulted in the incorporation of the Saar into the Federal Republic of Germany on 1 January 1957. The new German member state of the Saarland maintained its currency, the Saar franc , which was in a currency union at par with
7878-540: The rampant barter and black market trade (where cigarettes were used as currency). Although the new currency was initially only distributed in the three western occupation zones outside Berlin, the move angered the Soviet authorities, who regarded it as a threat. The Soviets promptly cut off all road, rail and canal links between the three western zones and West Berlin , starting the Berlin Blockade . In response,
7979-435: The reverse, which read Deutsche Bundesbank (instead of Bundesrepublik Deutschland ), as the Bundesbank was the issuing authority in this case. A total of one million gold DM 1 coins were minted (200,000 at each of the five mints) and were sold beginning in mid-2001 through German coin dealers on behalf of the Bundesbank . The issue price varied by the dealer but averaged approximately US$ 165. German coins bear
8080-422: The second half of the 1990s to remain competitive internationally. Due to its comparatively low balance sheet total internationally, Commerzbank was seen as a takeover candidate in the 1990s. The board pursued an independent continuation of the business, interpreted as rejecting a merger with Deutsche Bank. Also, a potential acquisition of Postbank by Commerzbank, which was discussed at times and would have led to
8181-402: The seizure of power, Jewish members of the supervisory board and executive board were ousted. From 1938, the bank no longer employed Jewish staff. The bank also participated in the ' Aryanization ' of companies by brokering them to other interested parties to maintain business relationships. There may have been around 1,000 such mediations. From November 25, 1941, all banks were obliged to report
8282-400: The social commitment of Commerzbank. The focus areas are science, culture, and social welfare. The Commerzbank Foundation supports disadvantaged people, such as in their professional integration, and promotes contemporary art. In the early 1980s, Commerzbank faced a crisis due to mistakes in assessing interest rate developments. The good economic conditions later favored the restructuring under
8383-459: The sole owner of Dresdner Bank, holding 100 percent of its shares. The merger of Dresdner Bank into Commerzbank was registered in the commercial register in May of the same year. An agreement on balancing interests and a social plan, including a new organizational structure for the headquarters, was reached with the employee representatives. Even after the takeover, the major bank maintained its lending to
8484-405: The status of legal tender but were rarely seen outside of collectors' circles. On 27 December 2000, the German government enacted a law authorizing the Bundesbank to issue, in 2001, a special .999 pure gold DM 1 coin commemorating the end of the German mark. The coin had the exact design and dimensions of the circulating cupro-nickel DM 1 coin, with the exception of the inscription on
8585-400: The struggling German economy to prevent a credit crunch in the mid-market sector. At the end of March 2009, Commerzbank formed its internal bad bank, called PRU (Portfolio Restructure Unit), into which non-strategically valuable securities worth 15.5 billion euros from Commerzbank and 39.9 billion euros from Dresdner Bank were outsourced. A joint bad bank with the nationalized Hypo Real Estate
8686-620: The summer of 1948 a giant wave of strikes and demonstrations swept over West Germany, leading to an incident in Stuttgart where strikers were met by US tanks ("Stuttgarter Vorfälle"). Only after the wage-freeze was abandoned, Deutschmark and free-ranging prices were accepted by the population. In the Soviet occupation zone of Germany (later the German Democratic Republic ), the East German mark (also named "Deutsche Mark" from 1948 to 1964 and colloquially referred to as
8787-449: The takeover of Dresdner Bank. By the end of 2009, this assessment had to be revised. Commerzbank sought additional state aid, leading to the Federal Republic of Germany acquiring over 25 percent of Commerzbank's shares, thereby securing a blocking minority. This was the first partial nationalization of a German financial institution. The silent participation of SoFFin increased to around 16.4 billion euros. In January 2009, Commerzbank became
8888-426: Was also talk of a large merger involving Commerzbank, Dresdner Bank, and Postbank. By mid-year, a merger of Commerzbank and Dresdner Bank was likely. In particular, Allianz, as the largest shareholder of Dresdner Bank, expected new momentum for its business from such a merger. After months of negotiations, the parties finally announced Commerzbank's takeover of Dresdner Bank. This was seen as a milestone in reorganizing
8989-593: Was also upgraded with digital technologies. At that time, the bank earned around two-thirds of its income abroad, for example, through its new representation in Taipei and expansions in Hungary and the Czech Republic. However, CEO Martin Kohlhaussen [ de ] still demanded more performance, especially from the sales of domestic branches. Commerzbank aimed to significantly increase its return on equity in
9090-629: Was in respect to the aims of inflation and political interference. This policy was the foundation of the European Central Bank 's present policy towards the euro. The German mark's stability was greatly apparent in 1993, when speculation on the French franc and other European currencies caused a change in the European Exchange Rate Mechanism . However, it should be remembered that "hard" is relative only if it
9191-575: Was initially discussed to strengthen the company's independence. Despite initial challenges, Eurohypo became an important component in Commerzbank's earnings statement. Therefore, the bank stopped the IPO planned 2005 to prepare for its takeover of Eurohypo. The re-entry into public and real estate financing marked a significant change in the company's strategy. Eurohypo initially insisted on its independence. In November 2005, Commerzbank finally announced
9292-432: Was largely completed. Commerzbank evaluated the process as a success and highlighted the positive response from all relevant target groups. In 2011, Commerzbank began repaying the silent participation of SoFFin. One of the most significant capital increases in German history partly financed this: a total volume of 14 billion euros, comprising 11 billion from investors and 3 billion from the bank's reserves. Despite criticism,
9393-416: Was left of Commerzbank Securities was folded into a division of the commercial bank called Corporates and Markets. In 2001, Commerzbank restructured its domestic business. It created a bank for private customers and a separate unit for corporate and investment clients. Units were sometimes opened on Saturdays to remain competitive in the increasingly challenging private customer market. In 2004, it confirmed
9494-555: Was no attempt or proposal suggested for the withdrawal of the 1pf and 2pf coins. Both coins were still in circulation in 2001 and supermarkets in particular still marked prices to the nearest pfennig. This penchant for accuracy continues with the euro (while Finland or the Netherlands for example, price to the nearest 5 cents) with the 1-cent coin still encountered in Germany. There were a considerable number of commemorative silver DM 5 and DM 10 coins , which actually had
9595-409: Was now on a profitable multi-channel bank. To this end, the bank maintained its branch network while many other banks reduced their local presence. Additionally, the thriving business with medium-sized corporate customers was to continue unhindered. Financial institution Financial institutions can be distinguished broadly into two categories according to ownership structure: Some experts see
9696-405: Was officially introduced on Sunday 20 June 1948 by Ludwig Erhard . Large amounts were exchanged for 10 ℛ︁ℳ︁ to 65pf. In addition, each person received a per capita allowance of DM 60 in two parts, the first being DM 40 and the second DM 20. A few weeks later Erhard, acting against orders, issued an edict abolishing many economic controls which had been originally implemented by
9797-465: Was sometimes discussed. The following years were marked by the integration of Dresdner Bank into Commerzbank. The merging of IT platforms, in particular, became a challenge. The "Dresdner Bank" brand was gradually phased out, with the new Commerzbank adopting some aspects of Dresdner Bank's former corporate identity . The rebranding became visible at branches within three weeks. By May 2011, both financial institutions' strategic and operational integration
9898-436: Was subdivided into 12 pfennig s, hence half a groschen into 6. After 1871, 12 old pfennig s would be converted into 10pf of the mark, hence 10pf coins inherited the groschen name and 5pf coins inherited the sechser name. Both usages are only regional and may not be understood in areas where a groschen coin did not exist before 1871. In particular, the usage of sechser is less widespread. In northern Germany
9999-472: Was the DM 20 note on 20 March 1992 (printed on 2 August 1991). The reason for this gradual introduction was, that public should become familiar with one single denomination, before introducing a new one. The change was finished with the introduction of the DM 5, DM 500, and DM 1000 denominations on 27 October 1992. The DM 500, and DM 1000 denominations were rarely seen in circulation due to value and all were introduced in one step. With
10100-471: Was the acquisition of Dresdner Bank in 2009. In the wake of the global economic and financial crisis, the Federal Republic of Germany became a major shareholder in the company. To this day, the government remains a significant bank shareholder, which is listed on the DAX . In recent years, the bank has undergone considerable transformation, returning to profitability, partly through substantial cost reductions and
10201-469: Was the official currency of West Germany from 1948 until 1990 and later the unified Germany from 1990 until the adoption of the euro in 2002. In English, it was typically called the " Deutschmark " ( / ˈ d ɔɪ tʃ m ɑːr k / DOYTCH -mark ). One Deutsche Mark was divided into 100 pfennigs . It was first issued under Allied occupation in 1948 to replace the Reichsmark and served as
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