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

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  • 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.

Suggested Citation

  • Nestmann, Thorsten, 2005. "German bank lending to industrial and non-industrial countries: driven by fundamentals or different treatment?," Discussion Paper Series 2: Banking and Financial Studies 2005,08, Deutsche Bundesbank.
    • Handle: RePEc:zbw:bubdp2:4263
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    More about this item

    Keywords

    German bank lending; gravity models; Oaxaca decomposition analysis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F30 - International Economics - - International Finance - - - General

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