The Banking Systems of Germany, the UK and Spain from a Spatial Perspective: The German Case

Gärtner, Stefan; Fernández, Jorge González

doi:10.2139/ssrn.3211892

Cited by 9 publications

(3 citation statements)

References 65 publications

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“…Guinanne (2001) explains their success from their ability to make use of superior information and their capacity to impose cheap but effective sanctions on potential defaulters. These characteristics presumably permitted credit unions to lend to clients to whom commercial banks typically did not provide credits and also to develop loan terms closer to the needs of the borrowers (Flögel 2018;Flögel and Gärtner 2018).…”

Section: Development Of Financial Institutionsmentioning

confidence: 99%

A Reform Strategy for Germany

Sanders

Stenkula

Fritsch

et al. 2020

The Entrepreneurial Society

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In this chapter, we outline a reform strategy to promote a more entrepreneurial society in Germany. Germany has developed a successful model of capitalism in which high productivity growth is driven by on-the-job learning and firm-specific skill accumulation. The economy is rooted in a strong and regionally All authors acknowledge financial support from the European Union's Horizon 2020 research and innovation program under grant agreement No 649378. László Szerb and Balázs Páger also acknowledge support from the National Scientific Research Fund of Hungary (OTKA/NKFI grant no. 120289 titled as Entrepreneurship and Competitiveness investigations in Hungary based on the Global Entrepreneurship Monitor surveys 2017-2019). Mikael Stenkula also gratefully acknowledges financial support from Jan Wallanders och Tom Hedelius stiftelse and from the Marianne and Marcus Wallenberg Foundation.

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Section: Development Of Financial Institutionsmentioning

confidence: 99%

A Reform Strategy for Germany

Sanders

Stenkula

Fritsch

et al. 2020

The Entrepreneurial Society

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“…There are in the recent literature many studies trying to analyse these effects. Most of them focused on the determinants of the spatial location of branches (Okeahalam, 2009;Acedanski & Karkowska, 2022;Wang & Guan, 2017;Qi et al, 2019), while others focused on the impacts in specific agents as SMEs (Rafaj & Siranova, 2022;Flogel & Gartner, 2018;Zhao & Jones-Evans, 2017;Hasan et al, 2017) or rural population (Ansong et al, 2015;BGFRS, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial and Economic Development: impacts of de-branching on the rural population in the south of Brazil

Eduardo Schuster

2023

Proceedings of the 6th International Conference on Advanced Research in Management, Business and Finance

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Although nowadays most financial services can be done online, physical bank branches still play an important role in community development and financial inclusion for some specifics agentsamong them the rural population. This study examines the effects of de-branching on the rural population in the southern region of Brazil, considering the call for further research by the Board of Governors of the Federal Reserve System to quantify the precise impact of branch closures. This work encompass data from various sources spanning from January 2002 to December 2020 at the Brazilian municipality level. Using spatial data regarding the geolocation of physical branches and land coverage, a definition of rural branch (separating it from urban branches) is proposed. Furthermore, a combination of cross sectional and time series panel models were employed to assess the impact of those different definitions of branches in the level of credit granted. The preliminary findings indicate that while the number of urban branches does not significantly affect the level of credit, rural branches have a notable impact. This result is relevant as it corroborates the theory that debranching might be harmful to the rural population. The findings suggest that the closure of rural bank branches may hinder access to credit and other financial services, exacerbating financial inequalities and widening the wealth gap. These areas, referred to as "banking deserts," often prompt individuals to turn to non-traditional and high-fee lending options, such as payday loans and check-cashing services. Consequently, addressing the challenges faced by rural communities due to de-branching is crucial for promoting financial inclusion and mitigating disparities in accessing financial services.

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“…However, misgivings about the suitability of this classification have emerged since the financial crisis (Beyer 2009). There is a whole range of alternative taxonomies and concepts-like ownership structure (private vs. government/cooperative-owned) and governance (traditional versus market-based banking)-for distinguishing between financial systems (for an overview, see Gärtner 2013, Flögel, 2019. Whilst appreciating these approaches, we see one additional distinctive feature of financial and banking systems: their spatial arrangements, relating to the importance of decentralised banking compared to centralised banking.…”

mentioning

confidence: 99%

Lost diversity: Business lending in the centralised banking system of the UK

Flögel¹,

Gärtner²

2018

VJH

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Zusammenfassung: Aufbauend auf der Klassifikation vom dezentralen und zentralen Banking untersucht dieser Beitrag die Diversität in der Unternehmenskreditvergabe des Vereinigten Königreichs. Anhand von Experteninterviews und Literaturrecherche wurde die Distanz in den Kreditvergabeentscheidungen an KMU für verschiedene Typen von Banken und anderen Finanzintermediären klassifiziert. Aufgrund des frühen Ausscheidens von regionalen und nicht rein profitorientierten Banken (Sparkassen und Genossenschaftsbanken) existieren heute kaum noch Finanzintermediäre, die Kredite dezentral, das heißt in räumlicher Nähe zum KMU-Kunden, vergeben. Drei unterschiedliche Ansätze wurden identifiziert, wie dezentrale Kreditvergabe auf der Insel wiedereingeführt werden kann. Aufgrund der Niedrigzinsphase und der verschärften Bankenregulierung ist es jedoch gegenwärtig herausfordernd, regionale Banken wirtschaftlich zu betreiben. Summary: Based on the classification of decentralised and centralised banking, this paper investigates diversity in business lending in the UK. Using expert interviews and desk research, the distance between lenders and SMEs in credit decisions for the identified types of lenders is classified. Due to the early disappearance of regional and dual bottom-line banks, today hardly any short-distance lender remains in the UK. Three different approaches have been identified to re-introduce decentralised lending to the island, though running regional banks is challenging in times of low interest rates and tightened bank regulation.

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The Banking Systems of Germany, the UK and Spain from a Spatial Perspective: The German Case

Cited by 9 publications

References 65 publications

A Reform Strategy for Germany

A Reform Strategy for Germany

Financial and Economic Development: impacts of de-branching on the rural population in the south of Brazil

Lost diversity: Business lending in the centralised banking system of the UK

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