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Global banks and international shock transmission: evidence from the crisis
TLDR
This article examined adverse liquidity shocks on main developed country banking systems and their relationships to emerging markets across Europe, Asia, and Latin America, isolating loan supply from loan demand effects, and found that loan supply in emerging markets was affected significantly through three separate channels: 1) a contraction in direct, cross-border lending by foreign banks; 2) an increase in local lending by local banks' affiliates in emerging market; and 3) an overall contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, crossborder lendingAbstract:
Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market economies. We examine adverse liquidity shocks on main developed-country banking systems and their relationships to emerging markets across Europe, Asia, and Latin America, isolating loan supply from loan demand effects. Loan supply in emerging markets across Europe, Asia, and Latin America 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 emerging markets; 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. Policy interventions, such as the Vienna Initiative introduced in Europe, influenced the lending-channel effects on emerging markets of shocks to head-office balance sheets.read more
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This Time Is Different: Eight Centuries of Financial Folly
Carmen Reinhart,Kenneth Rogoff +1 more
TL;DR: This Time Is Different as mentioned in this paper presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes.
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Capital Flows and the Risk-Taking Channel of Monetary Policy
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Journal ArticleDOI
The great retrenchment: international capital flows during the global financial crisis
Gian Maria Milesi-Ferretti,Gian Maria Milesi-Ferretti,Gian Maria Milesi-Ferretti,Cédric Tille +3 more
TL;DR: Milesi-Ferretti and Tille as mentioned in this paper identify stylized facts and main drivers of the retrenchment in international capital flows and identify the stylized fact and main driver of this development.
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Capital flows to emerging market economies: A brave new world?
Shaghil Ahmed,Andrei Zlate +1 more
TL;DR: In this paper, the authors examined the determinants of net private capital in emerging market economies and found that growth and interest rate dierentials between EMEs and advanced economies and global risk appetite are statistically and economically important determinants.
Journal ArticleDOI
Global Banking Glut and Loan Risk Premium
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What Do a Million Observations on Banks Say about the Transmission of Monetary Policy
Anil K. Kashyap,Jeremy C. Stein +1 more
TL;DR: The authors found that the impact of monetary policy on lending is stronger for banks with less liquid balance sheets, i.e., banks with lower ratios of securities to assets, and that this pattern is largely attributable to the smaller banks, those in the bottom 95 percent of the size distribution.
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A New Database on Financial Development and Structure
TL;DR: Beck, Demirguc-Kunt, and Levine as mentioned in this paper introduced a new database of indicators of financial development and structure across countries and over time, which unifies a range of indicators that measure the size, activity, and efficiency of financial intermediaries and markets.
Journal ArticleDOI
A New Database on the Structure and Development of the Financial Sector
TL;DR: In this paper, the authors introduce a new database of indicators of financial structure and financial development across countries and over time, which is unique in that it combines a wide variety of indicators that measure the size, activity, and efficiency of financial intermediaries and markets.
Journal ArticleDOI
Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market
Asim Ijaz Khwaja,Atif Mian +1 more
TL;DR: In this article, the impact of cross-bank liquidity variation induced by unanticipated nuclear tests in Pakistan was examined by exploiting crossbank liquidity variations induced by the nuclear tests, and it was shown that for the same firm borrowing from two different banks, its loan from the bank experiencing a 1 percent larger decline in liquidity drops by an additional 0.6 percent.
Book
Effects of Financial Globalization on Developing Countries: Some Empirical Evidence
TL;DR: The recent wave of financial globalization since the mid-1980s has been marked by a surge in capital flows among industrial countries and, more notably, between industrial and developing countries as discussed by the authors.
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