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International banking and transmission of the 1931 financial crisis

Accominotti, Olivier (2018) International banking and transmission of the 1931 financial crisis. Economic History Review. ISSN 0013-0117

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Abstract

In May-July 1931, a series of financial panics shook central Europe before spreading to the rest of the world. This paper explores the role of cross-border banking linkages in propagating the central European crisis to Britain and the United States. Using archival bank-level data, I document US and British banks’ exposure to central European frozen credits in 1931. Central European lending was mostly done by large and diversified commercial banks in the United States and by small and geographically specialized merchant banks/acceptance houses in Britain. Differences in the organization of international bank lending explain why the central European crisis disturbed few US banks but endangered many British financial institutions.

Item Type: Article
Official URL: https://onlinelibrary.wiley.com/journal/14680289
Additional Information: © 2018 Economic History Society
Divisions: Economic History
Subjects: H Social Sciences > HC Economic History and Conditions
Sets: Departments > Economic History
Date Deposited: 08 May 2018 09:08
Last Modified: 20 Nov 2019 05:36
Projects: 608129
Funders: Seventh Framework Programme, London School of Economics, Princeton University
URI: http://eprints.lse.ac.uk/id/eprint/87788

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