Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Balanced structural policy: German savings banks from a regional economic perspective

21.08.2009
New publication by the Institute for Work and Technology

Germany's decentralised savings banks contribute to the stability of the financial market. At this conclusion arrives a current publication by the German Institute for Work and Technology (Institut Arbeit und Technik/ IAT) just published by the European Savings Banks Group, Brussels. The author Dr. Stefan Gärtner won the European Savings Banks Academic Award 2008, first price.

The study found among others that regional banks which check capital mobility and have long-term relationships with and obligations to their customers stabilise financial markets. These findings have become particularly topical in the current financial crisis, which has confirmed their truth at least as regards Germany's savings banks. German savings banks have long been criticised by the European Commission as, operating solely within set regional boundaries, they stand for anything but the model internal market and financial market integration. "The traditional hypothesis on the relationship between financial integration and financial stability has been that financial integration and globalisation would dilute risks and reinforce financial stability."

Since the financial crisis began, however, there have been growing signs of a rethink: the Commission questioned its market philosophy for the first time in the European Financial Integration Report released in January 2009. "The financial crisis has offered a live demonstration that financial globalisation may indeed amplify the original financial shock." In effect, the quantitative empirical analyses presented here prove that the risks run by Germany's decentralised savings banks are indeed low and that regional banks can stabilize financial markets.

Savings banks are relatively small and have a higher concentration risk due to their regional loan portfolios, yet are nevertheless successful and contribute to financial market stabilisation. This can be explained by factors such as geographical and mental proximity and a sense of responsibility for staff and the region, in other words factors which cannot be recorded using the analytical tools applied by major banks and rating agencies. The financial crisis offers the chance to put aside traditional dogmata for a debate on companies' social and regional responsibility, on the role of a State which stimulates and supports but also regulates, and on the importance of regional diversity in Europe. The world of science as well as political and social groups should exploit this window of opportunity. In the context of this debate, savings banks could provide inspiration both for European regional development and for the architecture of stable financial markets.

Original publication:
Gärtner, Stefan (2009): Balanced Structural Policy: German Savings Banks From A Regional Perspective. Brussels. ISSN 1782-396X
Contact:
Dr. Stefan Gärtner, Tel. : 0209/1707-164, E-Mail: gaertner@iat.eu
Institute for Work and Technology
of the University of Applied Sciences Gelsenkirchen
Public Relations
Claudia Braczko
Munscheidstraße 14
45886 Gelsenkirchen
Tel.: +49-209/1707-176
Fax: +49-209/1707-110
E-Mail: braczko@iat.eu
info@iat.eu

Claudia Braczko | idw
Further information:
http://www.iat.eu

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: The pyrenoid is a carbon-fixing liquid droplet

Plants and algae use the enzyme Rubisco to fix carbon dioxide, removing it from the atmosphere and converting it into biomass. Algae have figured out a way to increase the efficiency of carbon fixation. They gather most of their Rubisco into a ball-shaped microcompartment called the pyrenoid, which they flood with a high local concentration of carbon dioxide. A team of scientists at Princeton University, the Carnegie Institution for Science, Stanford University and the Max Plank Institute of Biochemistry have unravelled the mysteries of how the pyrenoid is assembled. These insights can help to engineer crops that remove more carbon dioxide from the atmosphere while producing more food.

A warming planet

Im Focus: Highly precise wiring in the Cerebral Cortex

Our brains house extremely complex neuronal circuits, whose detailed structures are still largely unknown. This is especially true for the so-called cerebral cortex of mammals, where among other things vision, thoughts or spatial orientation are being computed. Here the rules by which nerve cells are connected to each other are only partly understood. A team of scientists around Moritz Helmstaedter at the Frankfiurt Max Planck Institute for Brain Research and Helene Schmidt (Humboldt University in Berlin) have now discovered a surprisingly precise nerve cell connectivity pattern in the part of the cerebral cortex that is responsible for orienting the individual animal or human in space.

The researchers report online in Nature (Schmidt et al., 2017. Axonal synapse sorting in medial entorhinal cortex, DOI: 10.1038/nature24005) that synapses in...

Im Focus: Tiny lasers from a gallery of whispers

New technique promises tunable laser devices

Whispering gallery mode (WGM) resonators are used to make tiny micro-lasers, sensors, switches, routers and other devices. These tiny structures rely on a...

Im Focus: Ultrafast snapshots of relaxing electrons in solids

Using ultrafast flashes of laser and x-ray radiation, scientists at the Max Planck Institute of Quantum Optics (Garching, Germany) took snapshots of the briefest electron motion inside a solid material to date. The electron motion lasted only 750 billionths of the billionth of a second before it fainted, setting a new record of human capability to capture ultrafast processes inside solids!

When x-rays shine onto solid materials or large molecules, an electron is pushed away from its original place near the nucleus of the atom, leaving a hole...

Im Focus: Quantum Sensors Decipher Magnetic Ordering in a New Semiconducting Material

For the first time, physicists have successfully imaged spiral magnetic ordering in a multiferroic material. These materials are considered highly promising candidates for future data storage media. The researchers were able to prove their findings using unique quantum sensors that were developed at Basel University and that can analyze electromagnetic fields on the nanometer scale. The results – obtained by scientists from the University of Basel’s Department of Physics, the Swiss Nanoscience Institute, the University of Montpellier and several laboratories from University Paris-Saclay – were recently published in the journal Nature.

Multiferroics are materials that simultaneously react to electric and magnetic fields. These two properties are rarely found together, and their combined...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

“Lasers in Composites Symposium” in Aachen – from Science to Application

19.09.2017 | Event News

I-ESA 2018 – Call for Papers

12.09.2017 | Event News

EMBO at Basel Life, a new conference on current and emerging life science research

06.09.2017 | Event News

 
Latest News

Rainbow colors reveal cell history: Uncovering β-cell heterogeneity

22.09.2017 | Life Sciences

Penn first in world to treat patient with new radiation technology

22.09.2017 | Medical Engineering

Calculating quietness

22.09.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>