Liberal Protectionism

From the early 1970s, both the global economy and international finance witnessed unprecedented change and transformation. Drawing on a range of new archival evidence, this book explores the internationalisation of West German banks as the Bretton Woods monetary system gave way to a new era of financial globalisation.

Using Germany’s largest lender Deutsche Bank as a case study, Matthias Kemmerer traces the regulatory foundations that underpinned the bank’s international and offshore banking activities until the mid-1980s. Through an innovative blend of business history and political economy, ‘Liberal Protectionism’ tells the story of how German bankers, policymakers, and regulators navigated the rise of global finance through domestic informal practices and a reliance on Germany’s national currency, the Deutsche Mark. It significantly enhances our understanding of the engagement of German banks in the newly globalising financial system from the late 1960s. This pioneering contribution to international financial history illustrates the variety and stickiness of national regulatory approaches, explaining why international convergence in bank regulation is so difficult to accomplish.