Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110959
Authors: 
Ongena, Steven
Tümer-Alkan, Günseli
von Westernhagen, Natalja
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 09/2015
Abstract: 
We investigate how differential exposures by German banks to the US real estate market during the recent financial crisis affect their corporate lending in Germany. Using unique bank-level exposure data, we distinguish between three different types of bank exposures, i.e. direct exposure to the US real estate sector, direct exposure to subprime lenders in the US, and indirect exposure through the liquidity provided to ABCP conduits. We find that banks with a higher exposure to the US real estate sector and to conduits cut their lending to German firms by more following a decrease in US home prices than banks that do not have such an exposure. Moreover, these banks then also shift their lending to industry-region combinations with lower insolvency ratios. Hence possible losses abroad shift bank lending at home, and the size of this effect depends on the type and the degree of exposure the bank has.
Subjects: 
financial sector
bank lending
real estate exposure
subprime
conduits
JEL: 
G01
G21
R00
ISBN: 
978-3-95729-143-1
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.