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Die Krise but not La Crise? The Financial Crisis and the Transformation of German and French Banking Systems

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  • IAIN HARDIE
  • DAVID HOWARTH

Abstract

This article explores what the financial crisis shows about changes in the German and French banking systems, the two largest in continental Europe. In particular, we highlight processes of financialization – defined here as the increased trading of risk. We focus on an apparent contradiction: why did the supposedly more protectionist and conservative German banking system suffer much higher losses than the more liberalized French system? This article also examines the responses of German and French banks and governments to the crisis and speculates how far these responses might limit future financialization and shape national banking systems.

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  • Iain Hardie & David Howarth, 2009. "Die Krise but not La Crise? The Financial Crisis and the Transformation of German and French Banking Systems," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 1017-1039, November.
    • Handle: RePEc:bla:jcmkts:v:47:y:2009:i:5:p:1017-1039
    DOI: 10.1111/j.1468-5965.2009.02033.x
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    References listed on IDEAS

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    3. Dermot Hodson & Deborah Mabbett, 2009. "UK Economic Policy and the Global Financial Crisis: Paradigm Lost?," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 1041-1061, November.
    4. Lucia Quaglia, 2009. "The 'British Plan' as a Pace-Setter: The Europeanization of Banking Rescue Plans in the EU?," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 1063-1083, November.
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    Cited by:

    1. David G. Mayes, 2009. "Did Recent Experience of a Financial Crisis Help in Coping with the Current Financial Turmoil? The Case of the Nordic Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 997-1015, November.
    2. Mario Tümmler, 2022. "Completing Banking Union? The Role of National Deposit Guarantee Schemes in Shifting Member States' Preferences on the European Deposit Insurance Scheme," Journal of Common Market Studies, Wiley Blackwell, vol. 60(6), pages 1556-1572, November.
    3. Ferber, Tim, 2016. "European banking regulation after the financial crisis: Franco-German conflict of interest during the negotiations on a single resolution fund," PIPE - Papers on International Political Economy 27/2016, Free University Berlin, Center for International Political Economy.
    4. Hanying Qi, 2019. "A New Literature Review on Financialization," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 40-50.
    5. Jacopo Carmassi & Daniel Gros & Stefano Micossi, 2009. "The Global Financial Crisis: Causes and Cures," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 977-996, November.
    6. Schneider, Sebastian, 2014. "Varieties of capitalism, varieties of crisis response Bank bailouts in comparative perspective," PIPE - Papers on International Political Economy 21/2014, Free University Berlin, Center for International Political Economy.
    7. Louis W. Pauly, 2009. "The Old and the New Politics of International Financial Stability," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 955-975, November.
    8. Quick, Reiner & Gauch, Kevin, 2021. "Is assurance on risk management systems relevant for bankers’ decisions?," Advances in accounting, Elsevier, vol. 55(C).
    9. Dermot Hodson & Lucia Quaglia, 2009. "European Perspectives on the Global Financial Crisis: Introduction," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 939-953, November.
    10. Mitchell Christopher W., 2016. "The structure of financial markets and the form of state bailouts, 1974–2009," Business and Politics, De Gruyter, vol. 18(2), pages 97-122, August.
    11. Kolluru Mythili & Hyams-Ssekasi Denis & Rao K.V.Ch.Madhu Sudhana, 2021. "A Study of Global Recession Recovery Strategies in Highly Ranked GDP EU Countries," Economics, Sciendo, vol. 9(1), pages 85-105, June.
    12. Nedelchev, Miroslav, 2015. "Coordination of banking regulation in the EU," MPRA Paper 66073, University Library of Munich, Germany, revised 2015.
    13. Lucia Quaglia, 2009. "The ‘British Plan’ as a Pace‐Setter: The Europeanization of Banking Rescue Plans in the EU?," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 1063-1083, November.
    14. Gutberlet, Melissa & Preuss, Lutz & Thorpe, Andrea Stevenson, 2023. "Macro level matters: Advancing circular economy in different business systems within Europe," Ecological Economics, Elsevier, vol. 211(C).

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