ABSTRACT
The West German financial system is dominated by its deposit-taking institutions, especially banks, which are free to engage in all types of financial services, to participate in securities markets, and to invest in commercial and industrial companies. There are many different types of bank, the industry is not heavily concentrated, and most banks act as ‘Universalbanken’ offering the full range of services. There are a few specialist institutions. The banking sector is of course subject to overall regulation and control, especially in the area of international banking, but, in general, market forces and competition have been allowed to flourish.
