Abstract
This chapter provides a comprehensive overview of the German banking system. In the sections “Structural Features of the German Banking System” and “The Structure of the German Banking System”, we will give a detailed description of the current structure of the German banking system and its recent developments. The consequences of the financial crisis of 2007–8 for the German banking system and other challenges facing German banks are discussed in the section “Challenges Facing German Banks”. In the section “German Banking in an International Comparison”, we provide a brief comparison of the German banking system with other European banking systems to point out the uniqueness of the German banking system. The strong role and involvement of the government in German banking is subject to ongoing debate. We elaborate more on this and discuss the findings of recent empirical research on the German banking system in the section “Results of Recent Research on the German Banking System”. Finally, “Concluding Remarks” draws the chapter to a close and offers an outlook for the future.
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