Abstract:

Traditionally, the people's and Raiffeisen banks in the Federal Republic of Germany are the local banks for medium-sized enterprises in industry, craft and trade. During the 70s the big banks (e.g. Deutsche Bank) and regional banks (e.g. Bayerische Vereinsbank) had been penetrating into this traditional target group of people's and Raiffeisen banks. In the course of the 80s the savings banks, too, developed and realised their strategy for medium-sized enterprises . Besides that, the take-over of medium-sized enterprises by a new generation in the management and changed market structures show a shift in the orientation of demand and banking of these enterprises. The results of our analysis, the structures being presented in this report, indicate that there has been an alienation process between banks and medium-sized enterprises that creates ideal conditions for all non-bank competitors to penetrate into this market. From the view of the target group the aims and wishes of the medium-sized enterprises are not sufficiently recognized by the banks. The business policy of the banks, tending more and more towards credit security instead of financing venture capital is rejected. On the basis of these perceptions and realised consultations the report presents the outlines of the new strategy and the new sales conception for the target group. This new strategy and the new sales conceptions will be taken over and realised in 1988 by a number of people's and Raiffeisen banks.