Previous empirical studies of secondary market discounts for developing countries have ignored important creditor country factors. The empirical evidence in this paper indicates that, after controlling for repayment indicators of borrower countries, bank exposure and capital are important...

What incentives do countries have to repay loans? Do banks credibly punish borrowers that behave badly - and if so, how? Two explanations are commonly offered for why countries repay debts: (a) to preserve their reputation as a good borrower; or (b) to avoid direct sanctions, such as trade...

This paper studies changes in spreads on bank loans to developing countries during 1968-81. It found that a borrower's experience had a significant impact on spreads. Spreads started at high values at low levels of loan experience and decreased as experience increased. Spreads at...

Using a model that distinguishes between large money center banks and smaller regional banks, this paper shows that the percentage of a country's debt held by the large banks affects the secondary market price of that country's debt: the higher the concentration of the debt, the higher the...

This paper finds that shareholder-friendly corporate governance is positively associated with bank insolvency risk, as proxied by the Z-score and the Merton's distance to default measure, for an international sample of banks over the 2004-08 period. Banks are special in that"good"corporate...

Banking markets are becoming increasingly international through financial liberalization and general economic integration. Using bank-level data for 80 countries for 1988-95, the authors examine the extent of foreign ownership in national banking markets. They compare net interest margins,...

Using bank data for 80 countries for 1988-95, the authors show that differences in interest margins and bank profitability reflect various determinants: bank characteristics, macroeconomic conditions, explicit and implicit bank taxes, regulation of deposit insurance, general financial structure,...

There has been little empirical work on the effectiveness of safety nets designed for banks, for lack of data on safety net design across countries. The authors examine cross-country data on bank-level interest expense and deposit growth for evidence of market discipline in individual countries....

This report shows empirically that international differences in withholding tax rates are indeed largely reflected in bank credit terms. Using a sample of 510 loans to 14 debtor nations originated between 1971 and 1981, the author finds that the developing countries have been able to reduce...