In Europe, and especially in Germany, corporate finance is widely viewed as being dominated by banks. With the tightening of bank regulation in recent years there is a danger that access to credit will become more difficult. However, many enterprises have already improved their creditworthiness by increasing their equity capital ratios and by diversifying their short-term funding. While banks will continue to play a major role in providing long-term loans, capital markets are especially suited to equity funding. Overall, German companies are characterised by a robust financing structure, through which they are well-equipped for future investment.