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Recent trends in U.S. and German banking: convergence or divergence?

By Rita Biswas and Horst Löchel

Abstract

The purpose of this study is to focus on two leading industrialized nations - the U.S. and Germany - analyze the differences in the recent trends in their respective banking sectors and see if indeed the banking industries in these two leading economies are gravitating towards a homogeneous global banking structure or, even after the current changes, have entered the 21st century with continuing differences. We find a convergent model of universal banking with voluntary separation, by subsidiary, of commercial and investment banking. --

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