The Nature and Degree of Competition

Daniel Detzer, Nina Dodig, Trevor Evans, Eckhard Hein, Hansjörg Herr and Franz Prante
Additional contact information
Daniel Detzer: Berlin School of Economics and Law
Trevor Evans: Berlin School of Economics and Law
Hansjörg Herr: Berlin School of Economics and Law

Chapter Chapter 7 in The German Financial System and the Financial and Economic Crisis, 2017, pp 113-124 from Springer

Abstract: Abstract At a national level, concentration measures and the number of independent organisations indicate a very low level of concentration in the German banking sector. However, if the cooperative and the public sectors are each considered as large, single institutions, concentration ratios are much higher. The interest margins of German banks have been slightly higher than in some other developed capitalist countries, such as JapanJapan and FranceFrance , but since 1995 margins have shown a downward trend. This can be related to increased competitive pressure in the deposit market due to the entrance of new financial institutions, in particular money market funds. At a regional level, concentration is considerably higher. Focusing on big cities and measuring competition by the number of branches in a certain area, savings banks and cooperative banks are the main players in the retail markets, while the big German banks are fringe players. Before 1995 the market for investment banking services was small, highly concentrated and dominated by German-owned banks. Since 1995, however, the market has grown, and foreign-owned banks have become much more important. The entrance of these new competitors led to a decline in the concentration ratios. However, the market for large IPOs today is dominated by a relatively small number of international investment banks, and only two German banks, Deutsche Bank and Commerzbank, belong to the big players.

Keywords: Banking Sector; Large Bank; Saving Bank; Short Term Interest Rate; Banking Service (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-319-56799-0_7

Ordering information: This item can be ordered from
http://www.springer.com/9783319567990

DOI: 10.1007/978-3-319-56799-0_7

Access Statistics for this chapter

More chapters in Financial and Monetary Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().