German investors hold a large share of their assets outside of the country. This made them particularly vulnerable to losses during the financial crisis. Several estimates have been presented to quantify these losses. This article discusses the possibilities and limitations of deriving the...

We investigate how the lending activities abroad of a multinational bank’s local and hub affiliates have been affected by funding difficulties during the financial crisis. We find that affiliates’ local deposits and performance have been stabilizing loan supply. By contrast, relying on...

The outbreak of the financial crisis caused many banks worldwide to come under pressure, forcing them to rethink their business models. This analysis shows the shrinking of German banks' balance sheet items that are related to non-residents. It is illustrated that up to and into spring 2010 the...

We investigate how the lending activities of a multinational bank's affiliates located abroad are affected by funding difficulties in view of the financial crisis. For this, we consider transaction-induced changes in long-term lending to the private sector of 40 countries by the affiliates of...