CHALLENGES OF THE BANKING SECTOR IN GERMANY

Apart from the financial crisis economic numbes, like the return on equity, prove the backlog of the German banking sector compared to other international insitutes. All studies confirm this backlog in a international peer group. It seem that this is the result of the unique dissected structure of the German banking sector with its three pillars of private banks, cooperative banks and saving banks. In a just started international consolidation process of the whole financial sector the disaster looms in which the German banking sector looses the connection to the international standards and will be a take over target at least. In addition the German banks are faced with an increasing erosion of margins and a constantly rising international pressure. Furthermore German banks must handle numerous regulatory requirements and escalating aspirations of their customers.