chapter  3
27 Pages

THE CREDIT INSTITUTIONS IN THE FEDERAL REPUBLIC OF GERMANY

The dominance of the universal bank has con t r i - buted subs tant ia l ly to the efficiency and the economic power of the German credi t system. Yet the i r power has been able to be controlled through both market competition and s t a t e and/or decentral ised elements of control . The l a t t e r has been exercised by legal regulation and government supervisory bodies; but i t i s above a l l the actual division of the system into pr ivate and commercial banks, public and cooperative banking agencies, between which intensive competition i s the ru le , that has eased the task of control .