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Geographic and demographic Bank outreach: Evidence from Germany's three-pillar banking system

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  • Conrad, Alexander
  • Neuberger, Doris
  • Schneider-Reißig, Maria

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.

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  • Conrad, Alexander & Neuberger, Doris & Schneider-Reißig, Maria, 2008. "Geographic and demographic Bank outreach: Evidence from Germany's three-pillar banking system," Thuenen-Series of Applied Economic Theory 98, University of Rostock, Institute of Economics.
  • Handle: RePEc:zbw:roswps:98
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Neuberger, Doris, 2015. "Financial Inclusion, Regulation, and Education in Germany," ADBI Working Papers 530, Asian Development Bank Institute.
    2. Conrad, Alexander & Hoffmann, Alexander & Neuberger, Doris, 2017. "Physische und digitale Erreichbarkeit von Finanzdienstleistungen der Sparkassen," Thuenen-Series of Applied Economic Theory 149, University of Rostock, Institute of Economics.
    3. Conrad, Alexander, 2008. "Banking in schrumpfenden Regionen: Auswirkungen von Alterung und Abwanderung auf Regionalbanken," Thuenen-Series of Applied Economic Theory 94, University of Rostock, Institute of Economics.
    4. Baltzer, Markus & Stolper, Oscar & Walter, Andreas, 2013. "Is local bias a cross-border phenomenon? Evidence from individual investors’ international asset allocation," Journal of Banking & Finance, Elsevier, vol. 37(8), pages 2823-2835.
    5. Conrad, Alexander & Neuberger, Doris & Trigo Gamarra, Lucinda, 2009. "Der Einfluss regionaler und demographischer Umfeldfaktoren auf die Kosten- und Ertragssituation von Sparkassen: Eine Effizienzanalyse," Thuenen-Series of Applied Economic Theory 107, University of Rostock, Institute of Economics.
    6. Baltzer, Markus & Stolper, Oscar & Walter, Andreas, 2011. "Home-field advantage or a matter of ambiguity aversion? Local bias among German individual investors," Discussion Paper Series 1: Economic Studies 2011,23, Deutsche Bundesbank.
    7. Chattopadhyay, Sadhan Kumar, 2011. "Financial Inclusion in India: A case-study of West Bengal," MPRA Paper 34269, University Library of Munich, Germany, revised 2011.
    8. Conrad, Alexander & Rösch, Fabian, 2018. "Messung der regionalen Versorgung mit Bankdienstleistungen vor dem Hintergrund der Digitalisierung: Erprobung eines neuen Messansatzes an Ländern der Europäischen Union," Thuenen-Series of Applied Economic Theory 156, University of Rostock, Institute of Economics.
    9. Dummann, Kathrin, 2008. "Retirement saving and attitude towards financial intermediaries: Evidence for Germany," Thuenen-Series of Applied Economic Theory 99, University of Rostock, Institute of Economics.
    10. Alexander Conrad & Alexander Hoffmann & Doris Neuberger, 2018. "Physische und digitale Erreichbarkeit von Finanzdienstleistungen der Sparkassen und Genossenschaftsbanken [Physical and digital accessibility of financial services at savings and cooperative banks]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(2), pages 255-284, October.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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