Trust Model for Analyzing Measures of Trust Building in the Banking Industry

Abstract

The German banking industry⁶ is one of the largest in the world. In January 2007, there were a total of 2,038 banking institutes in Germany with a total asset of 7,230,671 million euro. Bank customers can be divided into private customers, business clients, countries, and other banks. There are three types of banks, namely credit unions, banks regulated by public law, and private credit banks. In contrast to banks regulated by public law and credit unions, the goal of private banks is profit maximization. The main providers of private banks are the five major banks, also called the Cash Group, which run the Deutsche Bank, Commerzbank, HypoVereinsbank, Postbank, and Dresdner Bank. These banks mainly service large industry concerns and well-off customers, as well as other private banks, foreign banks, private real credit institutes, and private building societies. Banks regulated by public law comprise: Eleven state banks, the federal institute (KfW), approximately 500 “Sparkassen,” the federal building society (LBS), and mortgage banks. The “Sparkassen” are the main financers of medium-sized businesses in Germany. They also sell service products that originate from state banks, which are the principle banks of each county and supervise major clients. Credit unions include central institutes (“DZ Bank”, “WGZ-Bank”), approximately 1,250 other German banks (e.g., “Volks- und Raiffeisenbank”, “Sparda Bank,” and “PSD Bank”), and special banking institutes (e.g., “Union Investment,” “Beamtenbank”).