German Banks and Banking Structure

Abstract

Examines past and present structural features of the German banking industry. It shows empirically that - whilst conventional commercial banking is clearly in decline in the United States - the traditional dominance of banks in the German financial system has not eroded significantly over the last three decades. The way in which, and the extent to which, German banks fulfil the central functions for the German financial system are still consistent with its overall logic. A structural convergence of the German system towards the market-oriented financial systems of the United States or the United Kingdom is therefore unlikely in the foreseeable future.