With the Italian banking system in the spotlight, analysts have highlighted that Germany's lenders are still not out of the woods, saying shipping loans and too many bank branches are some of the very real problems they are currently facing.
German officials repeatedly tell EU members from the south of Europe to restructure their banking systems but industry experts believe they have a problem of their own as federal elections approach.
"Germany is overbanked, too many banks, very little consolidation has taken place," Carsten Brzeski, chief economist at ING Germany, told CNBC via email on Wednesday.
There are approximately 2,400 separate banks with more than 45,000 branches throughout the country and over 700,000 employees, according to Commercial Banks Guide, an industry website.This increases the cost income ratio for banks, Brzeski explained. Meanwhile, the International Monetary Fund (IMF) warned last May that cost-to-income and leverage remain high in Germany.