The german financial system

The paper examines the contrasting financial systems of Germany and the United States, highlighting their significant roles in economic growth. It notes that while both economies have experienced substantial GDP growth, the American system is primarily capital market-based, whereas Germany relies heavily on a bank-dominated structure. This distinction emphasizes Germany's unique position in the global financial landscape, shaped by its long-standing bank-based system. The analysis provides insights into how these differences influence economic outcomes in both countries.