Explains the development of the German financial system with a particular focus on financialization

Provides an overview of the impact of the financial crisis in Germany

Summarizes the role of finance in the German macroeconomy

Includes supplementary material: [...]

I. Development and structure of the German financial system1. The historical development of the German financial system1.1. Introduction1.2. German industrialisation1.3. The inter-war period1.4. The post-war period in West Germany2. The growth in finance and its role in the decades of financialisation2.1. Introduction2.2. Financial assets in the German economy2.3. Size and activity of banking and financial markets in an international comparison2.4. Increased financial activity in the German economy2.5. Financial activities of non-financial corporations2.6. Changes in household behaviour and balance sheets2.7. The rise of institutional investors2.8. Conclusion3. The structure of the German financial system3.1. Introduction3.2. Banks3.3. Securities markets3.4. Shadow banks3.5. Conclusion4. Germanys integration into international financial markets4.1. Introduction4.2. Current account developments and net capital flows4.3. Capital outflows and capital inflows4.4. International investment position4.5. International indebtedness4.6. International bank lending4.7. Conclusion[...]opean financial integration5.1. Introduction5.2. Key steps towards financial integration in Europe5.3. The growth of bank lending in Europe5.4. Bank lending to Euro Area countries5.5. Target 2 balances5.6. Conclusion6. Regulatory framework: financial market regulation in Germany6.1. Introduction6.2. History of German financial market regulation6.3. Movement towards a more market-based and deregulated financial system6.4. ConclusionII. Competition, profitability and efficiency7. The nature and degree of competition7.1. Introduction7.2. Concentration on the national level and international comparison7.3. Retail banking and regional markets7.4. Interest rate spreads in Germany and in international comparison7.5. Competition in investment banking7.6. Conclusion8. Profitability of the financial sector and sub-sectors8.1. Introduction8.2. Profitability of the German banking sector in international comparison8.3. Internal comparison of the profitability of the German banking sector8.4. Comparison of the profitability of the financial corporate sector with the non-financial corporate sector8.5. Conclusion9. Efficiency of the financial sector9.1. Introduction9.2. Approaches towards efficiency9.3. Efficiency of the German banking sector in international comparison9.4. Efficiency of different segments of the German banking sector9.5. The effect of mergers on efficiency of the banking sector9.6. ConclusionIII. Finance and the non-financial sector10. The changing roles of availability and sources of funds