Introduction - Genossenschaftsverband Bayern

VI Trends
1 Consolidation of the banking market
During the last decade, the German banking market was marked by
different developments. Firstly, the number of banks in Germany
(here: suppliers of capital transaction services for non-banks)
decreased distinctly. Between 2001 and 2005, the number of domestic
credit banks was reduced by 445 to 2,000. Secondly, the number of
foreign suppliers in Germany grew continuously. During the same
period, the number of banks from countries of the Euro zone went
up 20 per cent to 52 institutes whereas the number of banks originating
from the European Economic Area (without the Euro zone)
increased by around 12 per cent to 18 institutes. This is an indication
that ever more foreign credit institutes push into the German market
and put pressure on the domestic suppliers. Competition increases.
That offers the following future prospects: the present consolidation
of domestic institutes in the German and Bavarian banking market
will continue further. This trend is supported by rumours of a
take-over of Postbank and the sale of Landesbank Berlin (Berlin State
Bank) in June of 2007, as well as the acquisitions of Norisbank branches
and Berliner Bank by Deutsche Bank. So far, small and medium
regional suppliers have been particularly affected by the consolidation
wave. The number of German Volksbanks and Raiffeisenbanks
dropped by around 62 per cent between 1990 and 2006, as was the
case in Bavaria.
According to some forecasts, only half of the currently 1,200 German
cooperative banks will remain in 25 years from now. Also in
Bavaria, the number will decrease. There are conservative forecasts
that in the year 2003 only about 200 cooperative banks will do business
in Bavaria. In the public banking sector, too, consolidation pressure
will increase. More savings banks and state banks will merge
1 Consolidation of the banking market
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