Sparkassen revisited : the resiliency of German savings banks between globalization and crises

Despite changes in production networks, welfare state institutions or global finance, Germany's growth model still rests on its unique three-pillar banking system with its strong position of public and cooperative banks. This chapter takes a close look at German savings banks and reassesses the role of Sparkassen. Sketching main sectoral developments since the 1990s the chapter develops a threefold argument. First, savings banks successfully navigated through the white water of financialization and market-based banking. Second, specific institutional power resources equip Sparkassen with a high degree of resiliency vis-à-vis challenges posed by Europeanization and liberalization. Third, Sparkassen contribution to solving national crises is illustrated by saving banks' role in mitigating the economic turmoil caused by Covid-19.