Abstract:

The basis of German credit institutions' position in retail banking has always been their branch network. The density of these networks has been decisive in terms of market penetration and market opportunities: - approximately 95% of the adult population have got a giro account and a savings account. More than 37 million customers have banking connections with the savings bank organization, to which another 3 million corporate customers must be added. The penetration of the retail banking market, which began by the substitution of cash wage and salary for cashless payments at the early 1960's, has hitherto reached a degree in the Federal Republic of Germany that is to be explained by the all-purpose bank character of our credit institutions.