Arbeitspapier

Changing forces of gravity: How the crisis affected international banking

The global financial crisis has brought to an end a rather unprecedented period of banks' international expansion. We analyze the effects of the crisis on international banking. Using a detailed dataset on the international assets of all German banks with foreign affiliates for the years 2002-2011, we study bank internationalization before and during the crisis. Our data allow analyzing not only the international assets of the banks' headquarters but also of their foreign affiliates. We show that banks have lowered their international assets, both along the extensive and the intensive margin. This withdrawal from foreign markets is the result of changing market conditions, of policy interventions, and of a weakly increasing sensitivity of banks to financial frictions.

ISBN
978-3-86558-985-9
Language
Englisch

Bibliographic citation
Series: Bundesbank Discussion Paper ; No. 48/2013

Classification
Wirtschaft
Financial Crises
International Lending and Debt Problems
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Subject
international banking
gravity model
financial frictions

Event
Geistige Schöpfung
(who)
Buch, Claudia M.
Neugebauer, Katja
Schröder, Christoph
Event
Veröffentlichung
(who)
Deutsche Bundesbank
(where)
Frankfurt a. M.
(when)
2013

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Buch, Claudia M.
  • Neugebauer, Katja
  • Schröder, Christoph
  • Deutsche Bundesbank

Time of origin

  • 2013

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