Transferring Rhineland capitalism to the Polish‐German border Perceptions of bank governance and practice in Zgorzelec‐Görlitz

• Published in: International journal of bank marketing Vol. 26; no. 2; pp. 76 - 98
• Main Authors: Bátiz‐Lazo, Bernardo, Müller, Kristine, Locke, Robert R.
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 22.02.2008
• Subjects: Bank management; Bank marketing; Banking industry; Capitalism; Commercial banks; Corporate governance; Eurozone; Field study; GDP; Gross Domestic Product; Interviews; Loans; Population decline; Profitability; Questionnaires; Regional banks; Retail banking; Savings banks; Statistical analysis; Studies; United Kingdom > UK; Poland; Germany
• ISSN: 0265-2323; 1758-5937
• DOI: 10.1108/02652320810852763

Purpose The purpose of this paper is to look at the past development and potential of the Rhenish capitalist governance “model”. The origins and nature of the model are to be discussed. The aim is to focus on its specific role within the transformation processes of Central‐Eastern European economies. East‐Central Europe is where, it is contended, Rhineland capitalism's future will be decided. Design/methodology/approach Using a survey questionnaire, customers' perceptions of bank governance and practice in the Polish‐German city of Zgorzelec‐Görlitz are explored. The experience of Dresdner Bank is stressed and the fact that the local people not long before lived under a Socialist regime. A control group in London is used to ascertain the presence of German management traditions as opposed to Anglo‐American approaches to management in the context of retail bank markets. In total there were 210 participants in the survey (all equally divided between the three cities). Findings German and Polish respondents mostly rejected co‐determination and favored top‐down management. Germans seem to make trust and loyalty a major factor in their retail banking decisions while Polish seemed more open to American style marketing. The findings support the hypothesis about the long‐term viability of Rhinish capitalism. Originality/value The paper ascertains that the presence of German management traditions as opposed to Anglo‐American approaches to management in the context of retail bank markets in a border region is dominant.