The German Financial System and the Financial and Economic Crisis (eBook)

I. Development and structure of the German financial system1. The historical development of the German financial system1.1. Introduction1.2. German industrialisation1.3. The inter-war period1.4. The post-war period in West Germany2. The growth in finance and its role in the decades of financialisation2.1. Introduction2.2. Financial assets in the German economy2.3. Size and activity of banking and financial markets in an international comparison2.4. Increased financial activity in the German economy2.5. Financial activities of non-financial corporations2.6. Changes in household behaviour and balance sheets2.7. The rise of institutional investors2.8. Conclusion3. The structure of the German financial system3.1. Introduction3.2. Banks3.3. Securities markets3.4. Shadow banks3.5. Conclusion4. Germany’s integration into international financial markets4.1. Introduction4.2. Current account developments and net capital flows4.3. Capital outflows and capital inflows4.4. International investment position4.5. International indebtedness4.6. International bank lending4.7. Conclusion5. European financial integration5.1. Introduction5.2. Key steps towards financial integration in Europe5.3. The growth of bank lending in Europe5.4. Bank lending to Euro Area countries5.5. Target 2 balances5.6. Conclusion6. Regulatory framework: financial market regulation in Germany6.1. Introduction6.2. History of German financial market regulation6.3. Movement towards a more market-based and deregulated financial system6.4. ConclusionII. Competition, profitability and efficiency7. The nature and degree of competition7.1. Introduction7.2. Concentration on the national level and international comparison7.3. Retail banking and regional markets7.4. Interest rate spreads in Germany and in international comparison7.5. Competition in investment banking7.6. Conclusion8. Profitability of the financial sector and sub-sectors8.1. Introduction8.2. Profitability of the German banking sector in international comparison8.3. Internal comparison of the profitability of the German banking sector8.4. Comparison of the profitability of the financial corporate sector with the non-financial corporate sector8.5. Conclusion9. Efficiency of the financial sector9.1. Introduction9.2. Approaches towards efficiency9.3. Efficiency of the German banking sector in international comparison9.4. Efficiency of different segments of the German banking sector9.5. The effect of mergers on efficiency of the banking sector9.6. ConclusionIII. Finance and the non-financial sector10. The changing roles of availability and sources of funds10.2. Financial balances of different sectors10.3. Portfolio decisions of private households10.4. Ownership of the German corporate sector10.5. Conclusion11. Sources of funds for business investments: non-financial corporate sector and small and medium-sized enterprises (SMEs)11.1. Introduction11.2. Sectoral composition, profit shares and real investment11.3. Sources and uses of profits of non-financial corporations11.4. Real investment finance of non-financial corporations11.5. Real investment finance of small and medium-sized enterprises (SMEs)11.6. Conclusion12. The involvement of the financial sector in the restructuring of the economy12.1. Introduction12.2. Changes in German corporate governance since the 1990s12.3. Empirical development of M&A activity in Germany12.4. The character of M&A in Germany12.5. Involvement of financial institutions in corporate restructuring12.6. Conclusion13. Privatisation and the financial sector13.1. Introduction13.2. Privatisations in the German banking sector13.3. Privatisation programmes in Germany: relation to the financial sector13.4. Financial institutions and the government during the financial crisis13.5. Conclusion14. The financial sector and private households - culture and norms of the financial system14.1. Introduction14.2. The development of income distribution and the components of private household sector income14.3. Consumption and saving of private households14.4. Household wealth and indebtedness14.5. Conclusion15. The real estate sector and its relation to the financial sector15.1. Introduction15.2. Historical background and institutional framework15.3. Size and composition of the German real estate stock15.4. Relevance of the real estate sector for German economic activity15.5. Investment in real estate15.6. Real estate prices and rents15.7. The relation of the real estate sector with the financial sector15.8. Institutional investors in the real estate sector15.9. ConclusionIV. Finance, distribution and crisis16. Inequality and the financial system in Germany16.1. Introduction16.2. Functional income distribution16.3. Personal income distribution16.4. Effects of financialisation on income distribution in Germany16.5. Conclusion17. Crisis and macroeconomic policies17.1. Introduction17.2. The German macroeconomic policy regime in the era of finance-dominated capitalism17.3. The crisis 2008/09 and economic policy responses17.4. Conclusion