Explores the causes and consequences of the transformation of the bank-oriented financial system in Germany one more focused on the capital markets. Economics of globalization, international agreements, such as Basel II, EU financial policies, and Germany's own legal reforms struck at the heart of its traditional, relationship-banking model. The protest against the reforms has become so great that the German Chancellor Gerhard Schroeder announced that Basel II was not acceptable to Germany, especially as it affected the financing of Mittelstand (small and medium-sized firms), the basis of the German economy. With the economy stagnant, rising unemployment, job creation stalling bankruptcies reached a record high prices, the budget deficit is growing, and the German banks are more likely to suffer from a simultaneous structural and income crisis, German banks and businesses wondering what the future had in store for them.
This case is only available in paper format (HBP do not have the rights to distribute digital content). As a result, a digital copy of an educator if not available through this Web site. "Hide
by Jeffrey Fear Source: Harvard Business School 34 pages. Publication Date: April 18, 2003. Prod. #: 703028-HCB-ENG
Related Case Solutions & Analyses:
Learning From Toys: Lessons in Managing Supply Chain Risk From the Toy Industry
Power to the States: Fiscal Wars for FDI in Brazil
Internet Access Providers
Bell Atlantic in Union City Video
Thailand in May and June of 1997
Creating the International Trade Organization
Singapore: The Lion City in the Asian Economic Crisis
Creating and Managing Economic Competitiveness: The Saudi Arabia General Investment Authority
Braddock Industries Inc.
Kent County Council: Implementing IT for E-Government
