Danat-Bank

Danat-Bank
Company typeAktiengesellschaft
IndustryBanking
PredecessorBank für Handel und Industrie Edit this on Wikidata
Founded1922
Defunct1931
SuccessorDresdner Bank Edit this on Wikidata
Headquarters
Darmstadt

The Darmstädter und Nationalbank, in shorthand Danat-Bank or Danatbank, was a large German joint-stock bank. It was formed in 1922 from the merger of the Bank für Handel und Industrie (Darmstadt), known as Darmstädter Bank, and the Nationalbank für Deutschland. Its failure in July 1931 was a significant episode of the European banking crisis of 1931.[1][2][3]

Overview

Seal of Danat-Bank's branch in Leipzig
Danat-Bank building at Behrenstrasse 5 in 1931
Rush of savers from the Sparkasse of Berlin at Mühlendamm after the collapse of the Danatbank on 13 July 1931

In 1920/1921, the Darmstädter Bank für Handel und Industrie and the Nationalbank für Deutschland formed the bank union Darmstädter-Nationalbank Berlin. Both banks assumed a joint guarantee of capital and reserves of over 1 billion marks. The merger was fully completed in 1922, resulting in one of the largest commercial banks in Germany.

By 1930, Danat-Bank had become Germany's second-largest joint-stock bank, with total deposits of 2.4 billion Reichsmarks ahead of Dresdner Bank (2.3 billion), Commerz- und Privatbank (1.5 billion), Reichs-Kredit-Gesellschaft (619 million), and Berliner Handels-Gesellschaft (412 million), and only behind Deutsche Bank & Disconto-Gesellschaft (4.8 billion).[4]: 354  In the European banking crisis of 1931, however, Danat-Bank suffered a run which started around 17 June due to rumours of the insolvency of the Norddeutsche Wollkämmerei & Kammgarnspinnerei (North German Wool and Worsted Yarn Spinning Works), finally going bankrupt on 13 July 1931. It was thus one of the most prominent victims of deflation in Germany during the Great Depression.

The collapse of Danatbank triggered a loss of confidence in the German banking system, and let loose a wave of withdrawals from all other banks beginning the German Banking Crisis. In reaction, the government announced a Bank Holiday starting on 13 July, imposed further capital controls and forced the merger of Danatbank with Dresdner Bank. [citation needed]

Key individuals

Well-known bankers of the Danatbank and its predecessors are (in alphabetical order):

References

  1. ^ Born, Karl Erich (1967). Die deutsche Bankenkrise 1931: Finanzen und Politik (in German). München: Piper.
  2. ^ Pohl, Manfred (1982). Konzentration im deutschen Bankwesen (1848–1980) (in German). Frankfurt am Main: Knapp. ISBN 978-3-7819-0269-5.
  3. ^ Isabel Schnabel (2004), "The German Twin Crisis of 1931", Journal of Economic History, 64:3 (3), Cambridge University Press, on behalf of the Economic History Association: 822–871, JSTOR 3874821
  4. ^ P. Barrett Whale (1930), Joint Stock Banking in Germany: A Study of the German Creditbanks Before and After the War (PDF)

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