Abstract: It should be said that the highly organized structure of the financial system provides a number of advantages for the country. The following can be attributed to them: efficiency of attraction and transformation of financial resources, risk distribution, collection of information about investment objects, financial stability, determination of monetary policy transmission channels. Enterprises of countries that started industrialization later faced the problems of lack of pre-accumulated capital and underdevelopment of the securities market. In conditions of mental reluctance of investors to invest in risky assets, only banks could collect significant sums of capital for the development of new industries.

The financial system of Germany serves as a vivid confirmation, where, starting from the second half of the 19th century, banks gained control over the financial system. It is established that, Germany is one of the three leading and most developed countries in the world. Possessing significant economic and scientific and technical potential, it ranks third, after the USA and Japan, by the volume of industrial production and is the main exporter of goods and services. The study demonstrated that, in recent years, Germany has significantly increased its participation in international capital migration and has become one of the largest importers and exporters of capital. The article revealed that, according to the level of labor productivity in the manufacturing industry, national income per capita, Germany is ahead of the USA and other leading countries of the world. The scientific study emphasizes that, the apparatus of public finance is of particular importance in a federal state, as it not only determines the material basis of economic regulation and social policy, but also ensures a balanced division of powers and responsibilities of different levels of state administration and, thereby, the structure of the Federation itself.

The article substantiates that, today, Germany is a leader among EU countries in many indicators, including the standard of living and GDP per capita. Strong positions of this country in many sectors, including social, medical, educational. financial Germany’s banking system in 2022 is considered one of the strongest and most stable in the world: The level of overdue loans in this country does not exceed the two percent threshold — less only in the USA and Japan. The entry of banks into the supervisory boards of enterprises made it possible to control the issuance of securities, which restrained the development of the stock market [1]. Thus, it was banks that played a crucial role in the dynamic industrialization of Germany; these institutions provided not only the organization of significant amounts of capital, but also business management and strategic planning.