British And German Banking Strategies

The author investigates the strategies of eight publicly listed banks in Britain and Germany in the context of European financial integration. Evidence is provided that banks with defensive strategies fared better than those which attempted to break out of a coherent financial system in order to embrace new business opportunities

Profound changes have taken place in the role of banking in developed countries in recent years and further important structural alterations will doubtless follow. This study of European banking is the first to survey both the changing structure of the commercial banking industry in Europe and the strategic implications of these changes. The book begins by concentrating on the industrial economics of banking, presenting an analysis of the principal environmental forces affecting the financial sector: deregulation, economic instability, automation, and financial innovation. The second part offers valuable information on current trends in the five main EC countries. The analysis of each country includes a study of the recent evolution of its financial sector; and an overall assessment of the outlook for banking in terms of profitability, costs, productivity, and competition, as well as the changes in the regulatory environment. The third part of the book is dedicated to an analysis of some of the strategic choices of European banks, such as scale, diversification, and internationalization. Finally, the pace of change within the European banking industry is evaluated, as well as how some of the banks are adapting to the new environment.

This paper evaluates the risks and vulnerabilities of the German financial system and reviews both the German regulatory and supervisory framework and implementation of the common European framework insofar as it is relevant for Germany. The country is home to two global systemically important financial institutions, Deutsche Bank AG and Allianz SE. The system is also very heterogeneous, with a range of business models and a large number of smaller banks and insurers. The regulatory landscape has changed profoundly with strengthened solvency and liquidity regulations for banks (the EU Capital Requirements Regulation and Directive IV), and the introduction of macroprudential tools.

Written by a team of scholars, predominantly from the Centre for Financial Studies in Frankfurt, this volume provides a descriptive survey of the present state of the German financial system and a new analytical framework to explain its workings.

Technology. Deregulation. Privatisation. Globalisation. No financial service business is immune to these forces, as they feed on each other in a whirlwind of change. These changes will require a revolution in the way all organizations are managed, demanding: New competitive strategies Alliances and mergers Business intelligence Risk management Quick responses Driving strategic change in financial services outlines the important trends and political decisions which have transformed the financial services industry. It examines how organizations are responding to the new industry models by implementing new strategies, new structures and new management systems. Five senior executives describe how they have each helped to create and implement a practical vision for their organizations.