Abstract
The German financial industry, which has been stable for the last 15 years, has lately been put to the test. The German banking system was adversely impacted by the recent economic slump in Germany, which resulted in serious profit cuts for German banks. The implications for the structure of the industry are the focus of many analyses. The situation in Germany is sometimes even compared with the Japanese banking crisis, where substandard economic growth went hand in hand with an undercapitalized banking sector. Problems and suggestions for improving German banks are common topics of public discussion. In addition to the general economic situation in Germany, experts cite various problems with which German banks have to deal. For example, the universal banking system and the structure of the financial sector in Germany are frequently mentioned as causes for the banks’ difficulties.
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References
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The strong connection between banks and medium-sized companies in Germany can be traced back to the fierce competition between the banks in the three sectors. Savings banks and cooperative banks focused on medium-sized companies, starting a rat race. Banks were forced to build up a strong and extensive service offering for these companies. (Deeg, R., Finance Capitalism Unveiled, 1999, p. 230ff.)
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For example, the HypoVereinsbank is willing to sell off almost all affiliated companies. (E.g. Reiche, L., Rating-Agentur im Nacken, 2003.)
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Heiß, C. (2004). The German Financial Industry from a US Perspective. In: Schuster, L., Widmer, A.W. (eds) Wege aus der Banken- und Börsenkrise. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17053-9_5
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DOI: https://doi.org/10.1007/978-3-642-17053-9_5
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