German's Three-pillar Banking System Cross-countryperspectives In Europe

Germany's banking system is made up of public sector banks, co-operatives and commercial banks, all of which differ in terms of ownership and objectives. This IMF paper compares the performance of German banks with those in France, Italy, Spain and the UK, as well as reviewing developments in Austria and Sweden. It also considers the likely reforms and challenges that lie ahead. Issues discussed include: structural change and competition in the banking sector; profitability, revenue generation and cost control; the phase out of State guarantees and the impact on public sector banks.