Cross-border Bank Lending to Selected SEACEN Economies: An Integrative Report

This study seeks to address a number of rising policy concerns from the aftermath of the recent subprime crisis. Did foreign bank lending decline sharply and transmit the financial shocks from the advanced economies to the SEACEN emerging markets? Was the decline driven by the drying-up in supply of cross-border loans or more by the sharp decline in the demand for this funding? Does greater exposure of foreign banks to a host country lower the sensitivity of its claims to shocks originating from their own economies? Are bank claims on a country affected by the aggregate changes in claims on another country? How about the stability of these flows? In short, this study aims to ascertain the various multi-faceted aspects of international bank lending.