Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203480
Authors: 
Goldbach, Stefan
Efing, Matthias
Nitsch, Volker
Year of Publication: 
2019
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: International Finance No. B14-V1
Abstract: 
We study the effects of financial sanctions on cross-border credit supply. Using a differences-in-differences approach to analyze eleven sanctions episodes between 2002 and 2015, we find that banks located in Germany reduce their positions in countries with sanctioned entities by 38%. The average German branch or subsidiary located outside Germany does not adjust its positions after the imposition of sanctions. For affiliated banks located in countries with low financial standards, we even observe a relative increase in credit supply. These effects are stronger if sanctions are only imposed by EU member states and not by the entire UN.
Subjects: 
financial sanctions
law and finance
cross-border lending
international banking
JEL: 
F51
G18
G28
G38
K33
Document Type: 
Conference Paper

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