The Importance of Small Banks in Global Banking

Germany is a great example of this theory showing positive results. The nation has a large number of so-called Volkswagen, or people's banks,. better known in the West as cooperative banks. These banks work directly in communities and bank managers will probably personally know most of their clientele. This gives them more flexibility to differentiate good business owners from bad business owners based on more than nominal figures that a larger bank would look at.