Banks and Industrial Finance in the 1990s

Richard Deeg

Industry and Innovation, 1997, vol. 4, issue 1, 53-73

Abstract: This paper examines the role of the banking system in the German model of industrial development. It argues that banks continue to fulfil several of their traditional functions in industrial finance despite dramatic changes in financial regulation and the internationalisation of product and capital markets. The strength of the financial system in fulfilling these traditional functions, however, is at the same time a barrier to the creation of new high-tech industries — a major competitive challenge for Germany.

Date: 1997
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DOI: 10.1080/13662719700000004

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