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I've also heard that the German banking system is much more geographically diverse, with many smaller banks giving business loans to businesses in their immedia
by SuoDuanDao 5y ago
I've also heard that the German banking system is much more geographically diverse, with many smaller banks giving business loans to businesses in their immediate geographic area. If that's still the case, it would make sense that there would be less concentration of capital and therefore entrepreneurship.
- martin_a 5y agoThat's true, too. There are lots of so called "Volksbanken" ("peoples' banks") and "Sparkasse" ("savings bank", see this: https://en.wikipedia.org/wiki/Savings_bank https://en.wikipedia.org/wiki/Savings_bank) which act very local and are sometimes rather small especially in the more rural areas. Nevertheless those banks are often the biggest lenders to local businesses and startups in need of credit (my brothers' wife is working in such a department) although that is not VC like in "burn it if you need to". German banks are more risk averse, at least the most of them.