Abstract
Abstract Offers an in-depth discussion of regulatory and competitive issues in German banking. Emphasising that regulation, market structure, and competitive conduct are deeply interrelated the authors look at bank regulation from an Industrial Organisation perspective. Special consideration is given to the three-pillar structure of German banking comprising private, public, and co-operative banking institutions as well as to the driving forces that shaped bank regulation and supervision from its beginning in 1931. To assess market structure and competition in Germany’s banking market, the available empirical evidence is carefully discussed. A concluding section points to the challenges stemming from the decision to phase out state-guarantees for public banks.
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