In the spring of 1872, Deutsche Bank opened its first foreign branches in Yokohama and Shanghai, the most important foreign trade centers in China and Japan.
However, the expectations placed in the East Asian business were initially not fulfilled. The German Reich, which switched from silver to gold currency after 1871, commissioned Deutsche Bank to sell its large silver reserves in East Asia, which was regarded as a suitable sales market. Between 1873 and 1876, for example, Deutsche Bank made considerable profits from the sale of silver, however, the price of silver fell considerably as a result. This damaged the Shanghai and Yokohama branches, whose working capital was based on silver. After two loss-making financial years, the Executive Board in Berlin therefore decided to close the branches in 1875. From then on, business with East Asia was conducted through the Bank's London branch founded in 1873. Fourteen years later, Deutsche Bank returned to East Asia as part of its investment in Deutsch-Asiatische Bank, which also opened a branch in Yokohama in 1905.
Closing: Spring 1875
In the spring of 1872, Deutsche Bank opened its first foreign branches in Yokohama and Shanghai, the most important foreign trade centers in China and Japan.
However, the expectations placed in the East Asian business were initially not fulfilled. The German Reich, which switched from silver to gold currency after 1871, commissioned Deutsche Bank to sell its large silver reserves in East Asia, which was regarded as a suitable sales market. Between 1873 and 1876, for example, Deutsche Bank made considerable profits from the sale of silver, however, the price of silver fell considerably as a result. This damaged the Shanghai and Yokohama branches, whose working capital was based on silver. After two loss-making financial years, the Executive Board in Berlin therefore decided to close the branches in 1875. From then on, business with East Asia was conducted through the Bank's London branch founded in 1873. Fourteen years later, Deutsche Bank returned to East Asia as part of its investment in Deutsch-Asiatische Bank, which also opened a branch in Yokohama in 1905.