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 Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

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: Molecules Brilliantly Illuminated

Physicists at the Laboratory for Attosecond Physics, which is jointly run by Ludwig-Maximilians-Universität and the Max Planck Institute of Quantum Optics, have developed a high-power laser system that generates ultrashort pulses of light covering a large share of the mid-infrared spectrum. The researchers envisage a wide range of applications for the technology – in the early diagnosis of cancer, for instance.

Molecules are the building blocks of life. Like all other organisms, we are made of them. They control our biorhythm, and they can also reflect our state of...

Im Focus: Spider silk key to new bone-fixing composite

University of Connecticut researchers have created a biodegradable composite made of silk fibers that can be used to repair broken load-bearing bones without the complications sometimes presented by other materials.

Repairing major load-bearing bones such as those in the leg can be a long and uncomfortable process.

Im Focus: Writing and deleting magnets with lasers

Study published in the journal ACS Applied Materials & Interfaces is the outcome of an international effort that included teams from Dresden and Berlin in Germany, and the US.

Scientists at the Helmholtz-Zentrum Dresden-Rossendorf (HZDR) together with colleagues from the Helmholtz-Zentrum Berlin (HZB) and the University of Virginia...

Im Focus: Gamma-ray flashes from plasma filaments

Novel highly efficient and brilliant gamma-ray source: Based on model calculations, physicists of the Max PIanck Institute for Nuclear Physics in Heidelberg propose a novel method for an efficient high-brilliance gamma-ray source. A giant collimated gamma-ray pulse is generated from the interaction of a dense ultra-relativistic electron beam with a thin solid conductor. Energetic gamma-rays are copiously produced as the electron beam splits into filaments while propagating across the conductor. The resulting gamma-ray energy and flux enable novel experiments in nuclear and fundamental physics.

The typical wavelength of light interacting with an object of the microcosm scales with the size of this object. For atoms, this ranges from visible light to...

Im Focus: Basel researchers succeed in cultivating cartilage from stem cells

Stable joint cartilage can be produced from adult stem cells originating from bone marrow. This is made possible by inducing specific molecular processes occurring during embryonic cartilage formation, as researchers from the University and University Hospital of Basel report in the scientific journal PNAS.

Certain mesenchymal stem/stromal cells from the bone marrow of adults are considered extremely promising for skeletal tissue regeneration. These adult stem...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

Unique scope of UV LED technologies and applications presented in Berlin: ICULTA-2018

12.04.2018 | Event News

IWOLIA: A conference bringing together German Industrie 4.0 and French Industrie du Futur

09.04.2018 | Event News

 
Latest News

Structured light and nanomaterials open new ways to tailor light at the nanoscale

23.04.2018 | Physics and Astronomy

On the shape of the 'petal' for the dissipation curve

23.04.2018 | Physics and Astronomy

Clean and Efficient – Fraunhofer ISE Presents Hydrogen Technologies at the HANNOVER MESSE 2018

23.04.2018 | Trade Fair News

VideoLinks
Science & Research
Overview of more VideoLinks >>>