Special bank

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In banking, a specialist bank is a credit institution that only offers specific banking transactions and / or works with certain customer groups. The opposite is the universal bank .

General

While there are hardly any legal restrictions in Germany and theoretically all credit institutions could be universal banks, specialization of all banks in the separate banking system is prescribed by law or has grown over time. The special banking system is based on a strong division of tasks and specialization. The consequence of this is that a customer with a universal demand for heterogeneous banking services cannot satisfy these with a single bank, but has to establish relationships with several institutions.

When the Bundesbank was founded, its first monthly report from January 1949 included a total of 44 specialist banks with 12 branches. The Deutsche Bundesbank later no longer used the term specialist bank in its banking statistics. Instead, it aggregates the 122 specialist banks into real estate credit institutions (17), building societies (21), “banks with special tasks” (19) and others (65). The term “special bank” is, however, much more comprehensive than this list, because there are other types to be taken into account in banking operations.

species

In general, a distinction must be made between special banks with a statutory mandate and voluntary special institutes . The former include building societies (public-law such as the state building societies and private building societies ), capital investment companies , securities collection banks , development banks operating nationwide (the Reconstruction Loan Corporation and the Landwirtschaftliche Rentenbank ), the state development institutions , guarantee banks and development banks (e.g. the German investment banks ) and development company ). They mostly arose on the basis of a law, such as the building societies through the building society law. Voluntary special institutes are the partial payment banks , car banks ("open group banks" such as VW Bank or BMW Bank ), ship banks , credit card companies , group banks or branch banks ( Bank for Social Economy , Deutsche Apotheker- und Ärztebank or Pax-Bank ). Specialized banks in the narrower sense only carry out one banking business, either the deposit business and the lending business ( commercial banking ) or the securities business ( investment banking ). In a broader sense, these specialist banks are only represented in one place.

Banking aspects

The Bank Management examined in particular the differences between universal banks and specialized banks. As a rule, universal banks have a much larger company size - measured in terms of total assets or business volume - than specialist banks. The main difference between the two is business risk . If the company is the same size, a specialist bank usually has a higher risk than universal banks, because the latter are better able to process economic risks thanks to their broader range of products and customers. The one-sided concentration of the specialist banks on certain banking transactions and / or customers means that the necessary diversification and spread of risks is lacking; there is usually a lack of granularity with a simultaneous risk of cluster risks . This applies in particular to the existing loan portfolio . Special banks may not be able to react to changes in the market, especially if their business purpose is restricted by law. Specialist banks turned out to be "trouble spots", as there is a "considerable coincidence between financial crises and the separate banking system ". This was during the financial crisis from 2007 clearly as US mortgage lenders in real estate financing because of a housing bubble got into crisis because the vast majority of its borrowers , the interest level related high lending rates could not pay. Since mortgage bank or building society exclusively real estate clients as borrowers and mortgage- backed loans with high positive correlation to the real estate market , have a risk compensation by other groups of borrowers and industries is not possible. This also tends to apply to most other specialist banks. In contrast to this, however, state development banks usually have a very low-risk business model due to their legally defined promotional mandate.

The products offered by specialist banks can be mass -produced inexpensively; they can pass these cost advantages on to the market. Special banks typically protect themselves against interest rate risks , credit and special banks often have more intensive proprietary trading than savings banks and cooperative banks . Because of the specialization, your employees can acquire in- depth specialist knowledge that can contribute to a particularly high level of customer benefit. In any case, the limited scope of their banking business enables careful and effective banking supervision . If the company is small, rescuing it during a banking crisis is associated with less financial outlay than with universal banks.

The new Pfandbrief Act holds since May 2005 no longer the special bank principle of the previous mortgage banking law firm, but now allows all banks the issue of mortgage bonds if the legal requirements are met.

International

A separate banking system automatically leads to the creation of specialist banks. In the United States, from June 1933 to November 1999, the Glass-Steagall Act governed the segregated banking system, which forced the banking market to be segmented into commercial banking , investment banking and the depository sector. But even before that there was a separate banking system there through various laws such as the Free Banking Act of April 1838, which had been interpreted as a de facto separate banking system by the highest jurisdiction since 1876. The Conseil national de la Résistance had also introduced this measure in France in 1944, where it was abolished in 1984. The American banking system came closer to the German banking system because of the extensive repeal of the segregation banking regulation by the Gramm-Leach-Bliley Act of November 1999 and the fact that all large investment banks were either taken over by universal banks in the context of the financial crisis of 2007 or were given their status a universal bank changed.

The separate banking system in Great Britain was based on a traditional division of labor among English banks. You specialized early on in trade finance, securities or investment tasks. These specialist institutions were called "Merchant Banks" and began as early as the 18th century. Since Great Britain also adopted the separate banking system in 1986, there has been an unmistakable development towards the universal banking system. Since then there have been "deposit banks", "merchant banks" and "investment banks" side by side.

In China, the split-up of the People's Bank of China in 1984 resulted in a central bank as well as four state specialist banks for various sectors and tasks (Commercial Bank of China, Agricultural Bank of China , China Construction Bank and Bank of China ).

See also

Individual evidence

  1. ↑ Hans Büschgen , Das Universalbankensystem , 1971, p. 50.
  2. ↑ Svetlozar R. Nikolov, The role of banks in the financial system , 2000, p 52nd
  3. ↑ Monthly reports of the Bank deutscher Länder, January 1949, p. 46.
  4. ↑ Gabler Bank-Lexikon, 1988, Sp. 1921
  5. ^ Deutsche Bundesbank, Geld und Geldpolitik: Das Banken- und Finanzsystem , July 2015, p. 94.
  6. ^ Oswald Hahn, Structure of the Banking Industry , Volume 2, 1989, p. 79.
  7. ↑ Alexander G. Aulibauer / Friedrich Thießen, Investment banking and the stability of the financial system , in: Heinz-Josef Hockmann / Friedrich Thießen, Investment Banking, 2007, p. 63.
  8. ↑ George J Benston, Universal Banking , in: Journal of Economic Perspectives Vol 8 (3), 1994, pp. 121-143.
  9. ↑ Svetlozar R. Nikolov, The role of banks in the financial system , 2000, p. 55.
  10. ↑ Martin Kohlhaussen , The countries with a separate banking system in particular have proven to be trouble spots , in: Handelsblatt No. 92 of May 13, 1993, p. B12 / B14.
  11. ↑ Hilmar Kopper , The universal bank is not a discontinued model: Resistance to crises as a trump card , in: BZ No. 67 of April 5, 1995, p. 26.
  12. ↑ Denis Reichel, The Marketing Future of Financial Service Providers , 2007, p. 10.
  13. ↑ Deutsche Bundesbank, Financial Stability Report 2013 , November 2013, p. 47.
  14. ↑ George J Benston, Universal Banking , in: Journal of Economic Perspectives Vol 8 (3), 1994, p. 123.
  15. ↑ Dominique Plihon, Le Monde diplomatique , German, March 2013, p. 11.
  16. ^ Andreas Lukas, Company Valuation and Intellectual Capital , 2004, p. 5.
  17. ↑ Hans-Jürgen Bieling, International Political Economy: An Introduction , 2011, p. 147.