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Geographic and Demographic Bank Outreach: Evidence from Germany’s Three-Pillar Banking System

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Author Info
Alexander Conrad () (University of Rostock)
Doris Neuberger () (University of Rostock)
Maria Schneider-Reißig () (University of Rostock)

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Abstract

This paper investigates the performance of Germany’s three-pillar banking system in providing financial services nationwide, regarding different outreach indicators. At the federal state level, bank outreach shows South-North and West-East gaps. Combining regional and bank data at the district level for 2005, we examine the determinants of geographic and demographic branch penetration of the regional savings and cooperative banks. Both banking groups provide a larger branch penetration in more wealthy regions, but maintain a larger number of branches per inhabitant in less densely populated regions, easing access to retail banking services. With their comparatively large branch penetration in less wealthy regions, public savings banks help to reduce regional economic disparities. The branch penetration of both banking groups increases with the share of elder people and bank size in a region. Because of their public mission to serve all regions, public savings banks foster competition.

Geographische und demographische Reichweite von Banken: Empirische Evidenz für Deutschlands Dreisäulen-Bankensystem. Der Beitrag untersucht die flächendeckende Bereitstellung von Finanzdienstleistungen durch das deutschen Dreisäulen-Bankensystem, wobei unterschiedliche Indikatoren der Reichweite betrachtet werden. Auf der Ebene der Bundesländer zeigen sich Süd-Nord und West-Ost-Gefälle. Durch Verknüpfung von Regional- und Bankdaten auf Kreisebene für das Jahr 2005 werden die Determinanten der geographischen und demographischen Bank- stellenpenetration der regional tätigen Sparkassen und Genossenschaftsbanken untersucht. Beide Bankengruppen zeigen eine höhere Bankstellenversorgung in wirtschaftsstärkeren Regionen, unterhalten aber mehr Bankstellen pro Einwohner in dünner besiedelten Regio- nen, womit sie den Zugang zu Finanzdienstleistungen erleichtern. Mit ihrer relativ großen Bankstellenpenetration in wirtschaftsschwächeren Regionen tragen die Sparkassen zur Überwindung regionaler ökonomischer Disparitäten bei. Die Bankstellenversorgung bei- der Regionalbankgruppen steigt mit dem Anteil älterer Menschen und der Bankgröße in einer Region. Durch ihren öffentlichen Auftrag, alle Regionen zu versorgen, tragen die Sparkassen zur Sicherung des Wettbewerbs bei.

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Publisher Info
Paper provided by University of Rostock, Institute of Economics, Germany in its series Thuenen-Series of Applied Economic Theory with number 98.

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Length: 31 pages
Date of creation: 2008
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Handle: RePEc:ros:wpaper:98

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Related research
Keywords: Banks; Market Structure; Firm Strategy; and Market Performance; Firm Objectives; Organization; and Behavior;

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kathrin Dummann, 2008. "Retirement saving and attitude towards financial intermediaries – Evidence for Germany," Thuenen-Series of Applied Economic Theory 99, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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