German International Banks in East Asia (1889–1913)

Abstract

In this paper, the development in and withdrawal from Asia of the Deutsche Bank and the development and characteristics of the Deutsch-Asiatische Bank (hereinafter, DAB), also in Asia, are analysed. On DBA, the analysis is based on the newly explored archival materials, which are original financial statements of the bank in 1906. DBA’s headquarter was established in Shanghai, which was an economic centre in Asia linked to the international market. On the other hand, due to its Articles of Association, the DBA’s overall corporate governance was determined in Berlin. During the steady development of the economic situation in Asia, the core banking operations of the DAB were foreign exchange business and trade-related lending to European trading companies, comprador capitalists, and local financial institutions, while in Shangdong Province, the German settlement in China, the DAB established close relationships with the railway and mining managements. As an outcome of business activities in 1906, the DAB generated almost all profits based mainly on foreign exchange revenue. In detail, the Shanghai, Tientsin, Berlin, Tingtau, Hong Kong and Yokohama offices earned profits. Thus, the role of the DBA was important not only from the perspective of the imperialism theory constrained by capital export but also from the perspective of establishing trade finance infrastructure.

This is the corrected and revised the article that I reported at the Zushi International Banking History Conference (September 24–27, 2008), which had the theme of International Banking in Asia during the nineteenth and twentieth Centuries.

I am deeply grateful to Professor Pohl Manfred of Frankfurt University and Doctor Müller, M. L. (the staff of the Historical Archive of the Deutsche Bank), who gave me access to their excellent facilities and use of the research materials in this study, to Professor Sizuya Nishimura (Emeritus, Hosei University), who assisted me with his helpful criticisms of my draft, to the Society of Business and Commerce, Keio University, for their permission to use the Figure 3, and to Mr. Tetsuya Kiuchi (Keio University Press). A heartfelt word of thanks must go to Mr. Lane Kawakami (Manager of Micro Summit Corporation), who read and corrected my original English manuscript.