Corporate Governance and Access to Finance - ESBG

Figure A.2. Corporate Loans Market Share-Change in 2009(percentage points)2,01,00,00,90,60,1-1,0-0,3-0,4-0,9-2,0SavingsbanksLandesbankenCooperativesectorBig banksRegionalbanks andothercommercialbanks/branchesof foreignbanksOtherbanksThe core element of Sparkassen consists in the proximity to the client andthe deep knowledge of the customer. The high branch density allowsdeveloping a close link with the customer. Thanks to this business model,more time is spent with the client and better information is collected,which leads to relying less on credit scoring techniques and other metrics(which provided a false sense of comfort in this crisis) and more on adirect and close knowledge of the client. Thus, decision making can beperformed at the local level, without losing the identification with theregion. As an outcome of this proximity and knowledge of the customer,e.g. no credit crunch was observed during the crisis.Sparkassen contribute to the diversity of the banking system. They areobliged to open a current account to any citizen in their region. For thisreason, they are very often the only option for bankarisation for clientswhose profitability is below a certain threshold, and therefore a veryimportant instrument in the fight against financial exclusion.119