Organizational Design in the Banking Industry - a Comparative Institutional Analysis of the German Cooperative Banking Group
21 Pages Posted: 2 May 2006
Date Written: 2004
Different institutional designs often have evolved over time for the performance of the same economic or social activity. In the provision of financial services such different institutional arrangements can be found as well. This paper examines the strategy, organization and corporate governance of the cooperative banking group in Germany. By contrasting the different configurations of the organizational design parameters with that in the Deutsche Bank AG - a model more in line with standard economic theory about profit-maximizing firms - the systemic features of both business models are described. It is shown that both models constitute consistent systems. The performance and ability to adapt to changes of these two different organizational designs is analyzed at the end of the paper.
Keywords: banking, cooperatives, economics of organization, organizational design, corporate governance
JEL Classification: G21, L22, P13, P51
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