Shock Transmission Through Cross-border Bank Lending - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Shock Transmission Through Cross-border Bank Lending write by Galina Hale. This book was released on 2019. Shock Transmission Through Cross-border Bank Lending available in PDF, EPUB and Kindle.
Global Banks and International Shock Transmission
Global Banks and International Shock Transmission - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Global Banks and International Shock Transmission write by Nicola Cetorelli. This book was released on 2010-11. Global Banks and International Shock Transmission available in PDF, EPUB and Kindle. Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market (EM) economies. The authors examine adverse liquidity shocks on main developed-country banking systems and their relationships to EM across Europe, Asia, and Latin Amer., isolating loan supply from loan demand effects. Loan supply in EM across Europe, Asia, and Latin Amer. was affected significantly through three separate channels: (1) a contraction in direct, cross-border lending by foreign banks; (2) a contraction in local lending by foreign banks¿ affiliates in EM; and (3) a contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, cross-border lending. Charts and tables.
Crisis Transmission in the Global Banking Network
Crisis Transmission in the Global Banking Network - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Crisis Transmission in the Global Banking Network write by Galina Hale. This book was released on 2016-04-12. Crisis Transmission in the Global Banking Network available in PDF, EPUB and Kindle. We study the transmission of financial sector shocks across borders through international bank connections. For this purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global network of interbank exposures. We estimate the effect of direct (first-degree) and indirect (second-degree) exposures to countries experiencing systemic banking crises on bank profitability and loan supply. We find that direct exposures to crisis countries squeeze banks' profit margins, thereby reducing their returns. Indirect exposures to crisis countries enhance this effect, while indirect exposures to non-crisis countries mitigate it. Furthermore, crisis exposures have real effects in that they reduce banks' supply of domestic and cross-border loans. Our results, based on a large global sample, support the notion that interconnected financial systems facilitate shock transmission.
US vs. Euro Area: Who Drives Cross-Border Bank Lending to EMs?
US vs. Euro Area: Who Drives Cross-Border Bank Lending to EMs? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook US vs. Euro Area: Who Drives Cross-Border Bank Lending to EMs? write by Mr.Eugenio M Cerutti. This book was released on 2019-09-20. US vs. Euro Area: Who Drives Cross-Border Bank Lending to EMs? available in PDF, EPUB and Kindle. This paper analyzes the drivers of cross-border bank lending to 49 Emerging Markets (EMs) during the period 1990Q1-2014Q4, by assessing the impact of monetary, financial and real sector shocks in both the US and the euro area. The literature has traditionally highlighted the influence of US monetary policy on driving cross-border bank flows, and more recently the importance of both US and Euro Area (EA) financial/banking sectors’ related variables. Our contribution is the simultaneous analysis of the role of these US and EA drivers, as well as their interactions with real sector shocks. We corroborate the negative impact of US monetary policy tightening on cross-border lending to EMs, but we find that EA monetary policy seems to have an impact mostly on Emerging Europe, reflecting the fact that cross-border lending to most other EM regions is dollar denominated. We also find that real sector shocks in both the US and EA trigger an increase in cross-border lending, but less in EA when modeling the financial sector. Finally, for financial sector shocks, such as those associated with a decrease in bank leverage, our results indicate a broad-based overall contraction of cross-border lending if the shock originates in the US, and heterogenous effects across borrowing regions if the shock originates in the EA.
International Bank Lending Channel of Monetary Policy
International Bank Lending Channel of Monetary Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Bank Lending Channel of Monetary Policy write by Silvia Albrizio. This book was released on 2019-11-01. International Bank Lending Channel of Monetary Policy available in PDF, EPUB and Kindle. How does domestic monetary policy in systemic countries spillover to the rest of the world? This paper examines the transmission channel of domestic monetary policy in the cross-border context. We use exogenous shocks to monetary policy in systemically important economies, including the U.S., and local projections to estimate the dynamic effect of monetary policy shocks on bilateral cross-border bank lending. We find robust evidence that an increase in funding costs following an exogenous monetary tightening leads to a statistically and economically significant decline in cross-border bank lending. The effect is weakened during periods of high uncertainty. In contrast, the effect is found to not vary according to the degree of borrower country riskiness, further weakening support for the international portfolio rebalancing channel.
