This chapter gives an overview of the German system of finance. The German system of providing finance for investment is commonly considered a bank-based one, and is also commonly seen as having contributed significantly to German economic success. The chapter first analyses the source of investment finance for German non-financial enterprises over the period 1960–89 and compares them to UK non-financial enterprises' sources of funds. The chapter then considers whether German banks in their role as lenders to firms behave in a way which is significantly different from UK banks. Finally, the chapter discusses the argument that German banks act on shareholders' behalf, via their control of equity voting rights and positions on supervisory boards, to monitor the management of large German firms.