2020
DOI: 10.1111/tesg.12440
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The COVID‐19 Pandemic and Relationship Banking in Germany: Will Regional Banks Cushion an Economic Decline or is A Banking Crisis Looming?

Abstract: By providing liquidity Hausbanks can support business clients to overcome the social shutdown and hence cushion the economic impacts of the COVID‐19 pandemic. Germany's regional banks demonstrated such ability in the financial crisis of 2008/09 when, in contrast to large banks, they extended lending. Revisiting research on the global financial crisis and relationship banking, this note presents hints on the soundness and lending ability of retail banks, discussing their influence in the virus‐related economic … Show more

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Cited by 41 publications
(31 citation statements)
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“…In doing so, they have demonstrated a certain performance and ability to help businesses in difficult times. Behr, Norden and Noth [5], independently of Fragel and Garner [4], see a similar effect. The nuance is the ownership structure of the bank, as small state-owned banks are able to offer financial assistance on favourable terms.…”
Section: Introductionmentioning
confidence: 69%
See 1 more Smart Citation
“…In doing so, they have demonstrated a certain performance and ability to help businesses in difficult times. Behr, Norden and Noth [5], independently of Fragel and Garner [4], see a similar effect. The nuance is the ownership structure of the bank, as small state-owned banks are able to offer financial assistance on favourable terms.…”
Section: Introductionmentioning
confidence: 69%
“…These expenditures have the potential for higher growth than in the EU countries. In the context of this situation, Flogel and Garner [4] are looking for solutions especially for the private sector. They examine data from the last major crisis which started in 2008.…”
Section: Introductionmentioning
confidence: 99%
“…Today, the banking industry in Greece is considered as one of most important sectors of the economy, since it significantly contributes to its reforming and supports its recovery [7 , 9 , 10] . However, due to the COVID-19 pandemic, further changes are possible in the industry, as temporary measures, such as the elimination of many transactions in the banks’ branches, would potentially become permanent, based on the cases of other countries [11] .…”
Section: Data Descriptionmentioning
confidence: 99%
“…Banks were anticipating the disruption in the cash inflows from credit lines and loan commitments, however, monetary and fiscal policies helped banks to accommodate the liquidity demands (Li, Strahan, & Zhang, 2020). Flögel, & Gärtner, (2020) suggested that the COVID19 pandemic differs from the financial crisis and Hausbanks (relationship/local banks) in Germany can support business clients to survive amid the social shutdown and provide a cushion against the adverse economic bearings of the pandemic.…”
Section: Bankingmentioning
confidence: 99%