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Credit Crunch in Germany?

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  2. Economics, Finance, Business & Management
  3. Credit and Capital Markets – Kredit und Kapital
  4. Vol. 37, Issue 4
  5. pp. 479–499

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Nehls, H., Schmidt, T. Credit Crunch in Germany?. Credit and Capital Markets – Kredit und Kapital, 37(4), 479-499. https://doi.org/10.3790/ccm.37.4.479
Nehls, Hiltrud and Schmidt, Torsten "Credit Crunch in Germany?" Credit and Capital Markets – Kredit und Kapital 37.4, 2004, 479-499. https://doi.org/10.3790/ccm.37.4.479
Nehls, Hiltrud/Schmidt, Torsten (2004): Credit Crunch in Germany?, in: Credit and Capital Markets – Kredit und Kapital, vol. 37, iss. 4, 479-499, [online] https://doi.org/10.3790/ccm.37.4.479
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Credit Crunch in Germany?

Nehls, Hiltrud | Schmidt, Torsten

Credit and Capital Markets – Kredit und Kapital, Vol. 37 (2004), Iss. 4 : pp. 479–499

1 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.37.4.479
Language
Multiple languages
Pages
21

Author Details

Hiltrud Nehls, Essen

Torsten Schmidt, Essen

Cited By

  1. General Equilibrium Analysis of the Czech Financial Market and a Financial Fragility Model

    Machek, Ondřej

    Smrčka, Luboš

    Hnilica, Jiří

    Arltová, Markéta

    Tsomocos, Dimitrios P.

    Politická ekonomie, Vol. 62 (2014), Iss. 4 P.437

    https://doi.org/10.18267/j.polek.963 [Citations: 2]

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Abstract

Credit Crunch in Germany?

This paper evaluates whether the German economy was affected by a credit crunch from 2001 to 2003, i.e. a supply-side restriction of loans that is not in line with market interest rates and profitability of investment projects. With the help of a disequilibrium-model, we calculate a credit supply and a demand-function. We have compared estimated demand with estimated supply, finding evidence for a substantial supply side restriction of the German credit market, particularly since the end of 2002. The main reason for this restriction is the drop in earnings in the banking sector. Applying the model to Großbanken (big banks) and other credit institutions separately shows that the former were more affected than the latter. (JEL C32, E51, G2]1)

Table of Contents

Section Title Page Action Price
Hiltrud Nehls/Torsten Schmidt: Credit Crunch in Germany? 479
I. Introduction 479
II. Bank Capital and Stock Markets 481
III. A Disequilibrium-Model for German Credit 484
1. The Model 484
2. Data and estimation 487
IV. Results 489
V. Conclusions 493
Appendix 495
References 496
Summary: Credit Crunch in Germany? 498
Zusammenfassung: Gibt es eine Kreditklemme in Deutschland? 498
Résumé: Resserrement de crédit en Allemagne? 498

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