The German Financial System and the Financial and Economic Crisis

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. Introd