Danat-Bank


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, 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].

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, Commerz- und Privatbank, Reichs-Kredit-Gesellschaft, and Berliner Handels-Gesellschaft, and only behind Deutsche Bank & Disconto-Gesellschaft. 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, 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.

Key individuals

Well-known bankers of the Danatbank and its predecessors are :