There is no real equivalent to the municipal banking establishments found in Germany elsewhere: these foundations operate like credit unions locally, under the stewardship of and partly owned by the city or country, but with a national presence and reciprocation and profits that the union realizes is returned to the host community in the form of financial support for charitable causes and civic institutions. In stark contrast to private banks that are at odds with governments and central banks over policy and how to best smear the economy with credit to sustain market activity, the Sparkassen Verband is rather flush with money right now and not too parsimonious about lending. People, I think, feel good about parking their money there and the competition of this state-backed entity also probably serves to keep private banks in check as well, since in Germany there seems to be less antagonism between the government and wholly private lenders and investors and more discipline.
Various (temporary) touts and lures are employed by the private banks to attract customers with offers of a better return with interest and more free services—which is the mark of a healthy and responsible rivalry, and there’s no subtle message of guilt transmitted nor desperate attacks of a government-supported cartel and unfairness exchanged between the two systems. Animosity, at least, is not in the open. Neither one is totally beyond reproach or perfect, but both serve to keep the other in check. Aside from charity and public projects, a small percentage of the earnings go back into the consortium for advertising and for renovations for their franchise. My local branch celebrated its grand-opening after redoing their interior to include fully automated services and a posh entryway like the lobby of a theatre, giving out bottles of champagne (Sekt) to everyone that came by. I can’t imagine getting more than a calendar or maybe a toaster from any private institution and only for opening a new account—that is, save the grief, uncertainty and questionable loyalty which are offered freely.