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German Bank Lending During Financial Crises: A Bank Level Analysis

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Listed:
  • Heid, Frank
  • Nestmann, Thorsten
  • Von Westernhagen, Natalja
  • Weder di Mauro, Beatrice

Abstract

This paper studies German bank lending during the Asian and Russian crises, using a bank level data set from the Deutsche Bundesbank. Our aim is to gain more insight into the pattern of German bank lending during financial crises in emerging markets. We find that German banks reacted to the Asian crisis mainly by reallocating their portfolios among emerging markets. By contrast, the banks' behaviour during the Russian crisis is characterised by a general withdrawal from emerging markets. We find that the lending of large commercial banks was less stable than the lending of public sector banks during the Asian crisis. Differences were not as pronounced during the Russian crisis.

Suggested Citation

  • Heid, Frank & Nestmann, Thorsten & Von Westernhagen, Natalja & Weder di Mauro, Beatrice, 2005. "German Bank Lending During Financial Crises: A Bank Level Analysis," CEPR Discussion Papers 5164, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5164
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    bank lending; banking; contagion; currency crises; emerging markets crises; financial stability;

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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