The German Financial System and the Financial and Economic Crisis

ISBN-13: 9783319567983 / Angielski / Twarda / 2017 / 313 str.

Daniel Detzer; Trevor Evans; Eckhard Hein

Opis

This book provides an up-to-date overview of the development of the German financial system, with a particular focus on financialization and the financial crisis, topics that have increasingly gained attention since the crisis and the discussion on the secular stagnation started.

Spis treści

I. Development and structure of the German financial system

1. The historical development of the German financial system

1.1. Introduction

1.2. German industrialisation

1.3. The inter-war period

1.4. The post-war period in West Germany

2. The growth in finance and its role in the decades of financialisation

2.1. Introduction

2.2. Financial assets in the German economy

2.3. Size and activity of banking and financial markets in an international comparison

2.4. Increased financial activity in the German economy

2.5. Financial activities of non-financial corporations

2.6. Changes in household behaviour and balance sheets

2.7. The rise of institutional investors

2.8. Conclusion

3. The structure of the German financial system

3.1. Introduction

3.2. Banks

3.3. Securities markets

3.4. Sh

adow banks

3.5. Conclusion

4. Germany’s integration into international financial markets

4.1. Introduction

4.2. Current account developments and net capital flows

4.3. Capital outflows and capital inflows

4.4. International investment position

4.5. International indebtedness

4.6. International bank lending

4.7. Conclusion

5. European financial integration

5.1. Introduction

5.2. Key steps towards financial integration in Europe

5.3. The growth of bank lending in Europe

5.4. Bank lending to Euro Area countries

5.5. Target 2 balances

5.6. Conclusion

6. Regulatory framework: financial market regulation in Germany

6.1. Introduction

6.2. History of German financial market regulation

6.3. Movement towards a more market-based and deregulated financial system

6.4. Conclusion

II.

Competition, profitability and efficiency

7. The nature and degree of competition

7.1. Introduction

7.2. Concentration on the national level and international comparison

7.3. Retail banking and regional markets

7.4. Interest rate spreads in Germany and in international comparison

7.5. Competition in investment banking

7.6. Conclusion

8. Profitability of the financial sector and sub-sectors

8.1. Introduction

8.2. Profitability of the German banking sector in international comparison

8.3. Internal comparison of the profitability of the German banking sector

8.4. Comparison of the profitability of the financial corporate sector with the non-financial corporate sector

8.5. Conclusion

9. Efficiency of the financial sector

9.1. Introduction

9.2. Approaches towards efficiency

9.3. Efficiency of the German banking sector in i

nternational comparison

9.4. Efficiency of different segments of the German banking sector

9.5. The effect of mergers on efficiency of the banking sector

9.6. Conclusion

III. Finance and the non-financial sector

10. The changing roles of availability and sources of funds

<10.1. Introduction

10.2. Financial balances of different sectors

10.3. Portfolio decisions of private households

10.4. Ownership of the German corporate sector

10.5. Conclusion

11. Sources of funds for business investments: non-financial corporate sector and small and medium-sized enterprises (SMEs)

11.1. Introduction

11.2. Sectoral composition, profit shares and real investment

11.3. Sources and uses of profits of non-financial corporations

11.4. Real investment finance of non-financial corporations

11.5. Real investment finance of small and medium-sized enterprises (

SMEs)

11.6. Conclusion

12. The involvement of the financial sector in the restructuring of the economy

12.1. Introduction

12.2. Changes in German corporate governance since the 1990s

12.3. Empirical development of M&A activity in Germany

12.4. The character of M&A in Germany

12.5. Involvement of financial institutions in corporate restructuring

12.6. Conclusion

13. Privatisation and the financial sector

13.1. Introduction

13.2. Privatisations in the German banking sector

13.3. Privatisation programmes in Germany: relation to the financial sector

13.4. Financial institutions and the government during the financial crisis

13.5. Conclusion

14. The financial sector and private households - culture and norms of the financial system

14.1. Introduction

14.2. The development of income distribution and the components of priva

te household sector income

14.3. Consumption and saving of private households

14.4. Household wealth and indebtedness

14.5. Conclusion

15. The real estate sector and its relation to the financial sector

15.1. Introduction

15.2. Historical background and institutional framework

15.3. Size and composition of the German real estate stock

15.4. Relevance of the real estate sector for German economic activity

15.5. Investment in real estate

15.6. Real estate prices and rents

15.7. The relation of the real estate sector with the financial sector

15.8. Institutional investors in the real estate sector

15.9. Conclusion

IV. Finance, distribution and crisis

16. Inequality and the financial system in Germany

16.1. Introduction

16.2. Functional income distribution

16.3. Personal income distribution

16.4. Effect

s of financialisation on income distribution in Germany

16.5. Conclusion

17. Crisis and macroeconomic policies

17.1. Introduction

17.2. The German macroeconomic policy regime in the era of finance-dominated capitalism

17.3. The crisis 2008/09 and economic policy responses

17.4. Conclusion

Blurb

This book provides an up-to-date overview of the development of the German financial system, with a particular focus on financialization and the financial crisis, topics that have increasingly gained attention since the crisis and the discussion on the secular stagnation started. The authors of the book—economists who have conducted extensive research in this area—offer a perspective on the financial system in the context of its importance for the overall economic system. The book not only provides detailed insights into Germany’s financial system; it also takes a broader perspective on finance and connects it with current macroeconomic developments in Germany.