Savings banks and cooperative banks, operating as they do within their own regions, were far less exposed to international disruptions. Plus, close relationships built up over time with customers exuded stability in an environment fraught with uncertainty – clearly, the diversity of Germany’s banking landscape paid off on this score.
If you ask me, that alone is reason enough to systemically scour the existing rulebook for provisions that ask too much of smaller institutions and to then set about eliminating them. In Europe, the rulebook is presently being subjected to a thorough and comprehensive review, and the European Commission has already tabled quite a few proposals for amending the rules.