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 The ''Bank für Handel und Industrie'' in Darmstadt, often referred to as ''Darmstädter Bank'', was a significant joint-stock bank in Germany, active from 1853 until its merger with Nationalbank für Deutschland to form Danat-Bank in 1922. Ove ...

, and the

Nationalbank für Deutschland Nationalbank may refer to: * Danmarks Nationalbank, the central bank of Denmark * Nationalbank für Deutschland, a bank that merged into Darmstädter und Nationalbank in 1922 * Oesterreichische Nationalbank The (, , abbr. ) is the Nationa ...

. Its failure in July 1931 was a significant episode of the

European banking crisis of 1931 The European banking crisis of 1931 was a major episode of financial instability that peaked with the collapse of several major banks in Austria and Germany, including Creditanstalt on , Landesbank der Rheinprovinz on , and Danat-Bank on . It ...

Overview

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 Dresdner Bank AG () was a German bank, founded in 1872 in Dresden, then headquartered in Berlin from 1884 to 1945 and in Frankfurt from 1963 onwards after a postwar hiatus. Long Germany's second-largest bank behind Deutsche Bank, it was eventually ...

(2.3 billion),

Commerz- und Privatbank The Commerzbank Aktiengesellschaft (shortly known as Commerzbank AG or Commerzbank ) is a European banking institution headquartered in Frankfurt am Main, Hesse, Germany. It offers services to private and entrepreneurial customers as well as cor ...

(1.5 billion),

Reichs-Kredit-Gesellschaft The ''Reichs-Kredit-Gesellschaft'' (RKG, ) was a significant state-owned German bank, located in Berlin. History The RKG originated in the war economy of Germany during World War I. In 1917, the Reich Treasury established a Statistical Office ...

(619 million), and

Berliner Handels-Gesellschaft The ''Berliner Handels-Gesellschaft'' (BHG, ) was a significant German joint-stock bank, founded in 1856 in Berlin. It relocated to Frankfurt following World War II. On (with retroactive effect at ), BHG merged with Frankfurter Bank to form , ...

(412 million), and only behind Deutsche Bank & Disconto-Gesellschaft (4.8 billion). In the

, 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 economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% and becomes negative. While inflation reduces the value of currency over time, deflation increases i ...

in Germany during the

Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...

. 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

Key individuals

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

Siegmund Bodenheimer Sigmund or Siegmund may refer to: People * Sigmund (given name), list of people with the name Sigmund Arts and entertainment *'' Sigmund and the Sea Monsters'', American 1970s TV series ;Fictional characters * Sigmund (also Siegmund), a hero in N ...

, Manager of Darmstädter Bank 1910–1922, shareholder 1922–1931 *

Bernhard Dernburg Bernhard Dernburg (17 July 1865 – 14 October 1937) was a German liberal politician and banker. He served as the secretary for Colonial Affairs and head of the Imperial Colonial Office from May 1907 to 9 June 1910, and as the minister of Finance ...

, Manager of Darmstädter Bank 1901–1906 *

Jakob Goldschmidt Jakob Goldschmidt (also Jacob Goldschmidt; born 31 December 1882 in Eldagsen; died 23 September 1955 in New York) was a German-Jewish banker. Career Goldschmidt studied banking from H. Oppenheimer in Hanover. In 1907, he worked at the National ...

, Shareholder 1922–1931 * Johannes Kaempf, Branch director of the ''Bank für Handel und Industrie in Berlin'' and Reichstags-President *

Hjalmar Schacht Horace Greeley Hjalmar Schacht (); 22 January 1877 – 3 June 1970) was a German economist, banker, politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank during the ...

, Shareholder 1922–1923 *

Georg von Simson Georg may refer to: * ''Georg'' (film), 1997 *Georg (musical), Estonian musical * Georg (given name) * Georg (surname) * , a Kriegsmarine coastal tanker * Spiders Georg, an Internet meme See also * George (disambiguation) George may refer to: ...

, Shareholder bis 1929 *

Richard Witting Richard Witting (born: Witkowski; 19 October 1856, Berlin – 22 December 1923, Berlin) was a Prussian politician and financier. Witting studied law at Göttingen, where he became member of Burschenschaft Hannovera (fraternity),:de:Burschenschaf ...

, Director (1902–1910) and board member (1911–1922) of the Nationalbank, board member of Danatbank

References

External links

Documents about Danatbank in the German National Library
* {{Authority control 1931 disestablishments in Germany Defunct banks of Germany Banks established in 1922 Dresdner Bank