ABSTRACT
German industrialisation which started rather slowly at the beginning of the nineteenth-century, but gained momentum after the introduction of railways, was considerably influenced by the banks. The close connection between the banking system and German industry has interested scholars since the end of the nineteenth-century. This chapter shows whether, and, if so, to what extent, the established variations in the growth rates of individual industrial sectors, differences in fixed assets, or the extent of cartelisation were significant in determining the nature of capital funding and the relationships between banks and industrial enterprises. It explores the alternative hypothesis, that irrespective of type of industry, the nature and extent of capital procurement was decisively determined by the date of a firm 's incorporation, its size, profitability, and share-holder composition. The process of industrial concentration which was greatly strengthened by the formation of cartels, further limited the influence any one bank could exercise on industrial enterprises.
