Banken für kleine und mittelständische Unternehmen - Die Rolle der Sparkassen in Deutschland

Summary

The German Savings banks have traditionally been regional market leaders. Market leadership is mainly a result of the high branch network density. In the German banking community the big private banks have launched a discussion concerning the future structure of the German banking market. Private banks have doubted the role of the German savings banks and have accused them of unfair competition. Reasons for this charge were the governmental guarantees for the savings banks’ assets and liabilities and thus lower funding cost for savings banks. These governmental guarantees however have expired in summer 2005, but the discussion has not yet come to an end.

The article will give evidence that the discussion concerning the structure of the German banking market is not based on unfair competition by the savings banks but to some extend on unfair competition by the German private banks and their supporters. German savings banks are the number 1 in competition, which is not a result of unfair competition. German savings banks have rather focussed on their customers (private clients and SMEs) and have kept in touch with these customers. The German private banks have mainly focussed on other maarket segments for the last years — investment banking, institutional clients, capital markets etc. These market segments involve relatively low profit margins and a high degree of profit volatility. Now the private banks appear to be surprised that potential clients allowing higher profit margins (private clients, SMEs etc.) have decided to draw their attention to savings banks. In addition, they have complained on low profitability that would be a result of unfair competition by the savings banks. But the reproach is too perspiculous! German savings banks have shown stability — overall the entire business case. This stability with a clear focus on the clients needs has been honored by these clients. The savings banks will certainly continue to be successful in their market segments.