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German bank lending to industrial and non-industrial countries: driven by fundamentals or different treatment?

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Author Info
Nestmann, Thorsten
Abstract

This paper shows that the substantial disparity in German bank lending towards industrial (IC) and non-industrial (Non-IC) countries is largely explained by differences in countries’ endowments and only to a minor extent by German banks’ different treatment of these country groups. This is demonstrated by applying a decomposition technique to an augmented gravity model that is estimated for German foreign lending using a new micro panel data-set on individual claims from the Deutsche Bundesbank covering the period from 1996 to 2002.

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Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 2: Banking and Financial Studies with number 2005,08.

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Date of creation: 2005
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Handle: RePEc:zbw:bubdp2:4263

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Keywords: German bank lending gravity models Oaxaca decomposition analysis

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Find related papers by JEL classification:
F30 - International Economics - - International Finance - - - General
F34 - International Economics - - International Finance - - - International Lending and Debt Problems
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

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