Choosing the right bank is the first step to your success

In today's business world it is simply impossible to imagine the company, engaged in commercial activities without having a corporate bank account. Since the functions of initial financial monitoring are now carried out by financial institutions, and the opening and maintenance of a bank account is an integral part of doing business, this issue should be approached with great responsibility. So what to consider when choosing a bank? What is the best way to keep your savings?

Apart from the basic criteria of the bank, such as the reliability and reputation of the bank, available services, cost and quality of maintenance, it is essential to have knowledge of the political and economic situation in the country of the selected bank. Taking into account the fact that European countries are experiencing economic instability, this choice must be made with great caution.

According to the International Monetary Fund (IMF), in 2012 the gross domestic product of Greece will shrink by 4.7%, Portugal - 3.3%. In Spain, unemployment stands at 24%, in Greece - 22%, Portugal - 15%. In Greece, Ireland, Italy, and Portugal the size of the public debt exceeded 100% of GDP. At this point, Cyprus economy has become a hostage to crisis in Greece, as the huge amount of Greek debt has been accumulated in the Cypriot banks. Three leading banks, as a result of the EU decision to write off part of the public debt of Greece, lost more than 3 billion euro. Out of all Cypriot banks, «LaikiBank» was the most affected. At the request of the supervisory authority of the EU, «LaikiBank» was ordered to recapitalize and collect 1.97 billion Euros until the 30th of June in order to ensure a minimum level of capital adequacy of first level, which is set at 9 per cent. These countries, much like Spain, are almost deprived of the opportunity to raise funds on financial markets.

In the case of a Greek exit from the Eurozone funds in bank accounts in the country will be frozen and all their euro balances will be converted into new drachmas. Therefore, the euro in a Greek bank is not equal to euro in German bank.

The credit crisis in the Eurozone's periphery remains serious. Banks can not attract private capital to the extent, which will allow them to comply with a 9 per cent requirement, and therefore banks are forced to sell its assets, and to limit lending. All this factors only exacerbates the recession in the Eurozone.

So what are the alternatives?

USA Dollar

Federal Reserve (Fed), which was established in 1913, is the only organization that has the right to issue new dollars and it is owned by the largest private US banks. This is a private organization with almost unlimited powers. Even the US government has no rights of actual emission control over US dollar. Emission of dollars is completely controlled by the Fed. Since 1971, US dollars are printed in unlimited quantities and are not guaranteed by the US gold reserves, which led to the growing overproduction of dollar supply.

The purchasing power of the dollar has long been provided not only by the USA GDP, but by the GDP of all other countries that use US currency. Since 1971, the dollar supply has increased tenfold and now exceeds the real value of world's production output. For many decades, the United States can afford to live beyond their means: being accountable for about 20% of world's GDP, the United States consumes 40% of all consumer goods produced in the world. Today the world's wealth is being redistributed in favor of the USA only because of exchange of real goods for unsupported currency, in fact - for "phony money".

Such a system can not exist for a long time, as it will eventually collapse, like any other financial pyramid structure. Despite the respectable age of this particular pyramid, it faces imminent collapse precisely because of insecurity of the US dollar in relation to the real production output.


Warren Buffet, a respectful American business magnate, has described his pessimism towards purchasing of large amounts of gold in the following manner: "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

Assets deposits in the respectful banks, which can be trusted in the modern reality.

The main advantage of German banks in today's realities – is its mandatory participation in the fund contributions of the Federal Union of German banks. In the case of bank insurance, the maximum insurance benefit each client is entitled to is 30% of the equity of the relevant bank. In the case of Commerzbank, this amount is currently 6 billions Euros. Commerzbank AG - the second largest bank in Germany. And despite the recent credit rating downgrade by Moody's for the numerous European banks, Commerzbank rating remains higher than that of other European banks, because of the country's low debt burden on individuals and legal entities, the stability of the economy and lower unemployment rate.

Working through a leading German bank will increase the reliability of your business and reduce the risk of financial losses. Moreover, it is a mechanism that enhances the reputation of your company.

The experience of our company and our business connections will reduce the time to perform all the necessary steps required for your successful start in Germany.

If you are interested in this offer, please contact one of our offices today and you will be able to work with one of the most reliable banks in Europe within the shortest possible time.