Although Germany's banking sector has experienced a wave of consolidation, especially since the financial crisis, the … country is still home to a high number of banking institutions. When domestic economic activity was sluggish in the mid-2000s … strongly reduce their balance sheets and ordering the liquidation of one of them. Since 2010 the German banking sector has …

We discuss the current state of the European banking system and the major challenges for the future. The low interest … macroprudential regulation. Overcapacities in banking should be reduced by resolving banks that do not pass the ECB’s comprehensive …