Are Universal Banks Bad for Financial Stability? Germany During the World Financial Crisis
This case study explores the contribution of universal banking to ﬁnancial stability in Germany during the recent ﬁnancial crisis. Germany is a prototype for universal banking and has suffered from a rather small number of banking crises in the past. We review the banking literature and analyze the major institutional and regulatory features of the German ﬁnancial system to establish a nexus between universal banking and stability.