Working paper 2010-20
Case Study of Three German Banks Stuck in the Subprime Crisis
Peixin ZHANG
Abstract :
This paper is aimed at finding banks' destabilizing behaviors that explain why the impact of the crisis is so serious in the banking system. By comparing three German banks stuck in the crisis, I find that: I) the leverage is a common destabilizing factor and, ii) the banks were highly interconnected to other financial institutions and had a large maturity mismatch were more seriously affected by the crisis.
JEL Codes : G01, G14, G21, G28
Keywords : Systemic crisis, Leverage, Maturity mismatch, Banking regulation
