In response to the ‘special inspections’ conducted by the Financial Services Agency since last year, various measures such as the drawing up of management rehabilitation plans and organization changes through mergers have been taken by large firms carrying a large amount of debt and seeing a noticeable weakening of business performance.
To make a definitive judgement, we need to examine in detail to what extent the benefits expected from a separation of business areas are likely to be realised and what implications this has for banks, market structures and the real economy. C)  The German banking system: outlook  What do the challenges I have outlined mean for the future of German institutions?