The structural diversity of the German banking market and the associated variety of business models is thought to have been an important factor in the stability of the German banking market in recent decades. This diversity is manifested both in the three-pillar structure of the German banking...

The contribution of institutionally diversified financial sectors to more sustainable growth and financial stability-in particular the role of effective local banking structures—is not always fully appreciated, whether in the context of development cooperation or in policy discussions in the...