Bank power in West Germany revised

This article examines the empirical and theoretical validity of the power of banks over industry in West Germany. An outline of the historical development, structure and institutions of credit in the Federal Republic is followed by discussion of the three alleged factors behind the banks' power: the functional linkage of bank and industrial capital; property rights and ‘personal influence’; the planning and economic guidance capacities of the banks. Finally, it is argued that the thesis of bank power in Germany, in the light of empirical evidence and theoretical reflection, should be somewhat more differentiated.