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Loyal Lenders or Fickle Financiers: Foreign Banks in Latin America

Galindo, Arturo; Micco, Alejandro; Powell, Andrew - 2005

We suggest that foreign banks may represent a trade-off for their developing country hosts. A portfolio model is developed to show that a more diversified international bank may be one of lower, overall risk and less susceptible to funding shocks but may react more to shocks that affect expected...

Persistent link: https://www.econbiz.de/10010327056

Bank Ownership and Lending Behavior

Micco, Alejandro; Panizza, Ugo - 2004

This paper examines whether bank ownership (public versus private, domestic versus foreign) is correlated with bank lending behavior over the business cycle. The paper finds that state-owned banks may play a useful credit-smoothing role because their lending is less responsive to macroeconomic...

Persistent link: https://www.econbiz.de/10010327091

Better the Devil that You Know: Evidence on Entry Costs Faced by Foreign Banks

Galindo, Arturo; Micco, Alejandro; Serra, César Manuel - 2003

Institutional and legal differences between countries increase entry costs and reduce the ability of banks to expand abroad. We use bilateral foreign banking data for 176 countries to estimate a gravity model in which bilateral cross-border banking activity is explained, in addition to standard...

Persistent link: https://www.econbiz.de/10010327105

Banking globalization, transmission, and monetary policy autonomy

Goldberg, Linda S. - 2013

International financial linkages, particularly through global bank flows, generate important questions about the consequences for economic and financial stability, including the ability of countries to conduct autonomous monetary policy. I address the monetary autonomy issue in the context of...

Persistent link: https://www.econbiz.de/10010333575

Divergence of Risk Indicators and the Conditions for Market Discipline in Banking

Forssbæck, Jens - 2011

Accurate measurement of bank risk is a matter of considerable importance for bank regulation and supervision. Current practices in most countries emphasize reliance on financial statement data for assessing banks’ risk. However, the possibility of increased reliance on market-based risk...

Persistent link: https://www.econbiz.de/10011689950

What drives international bank flows? Politics, institutions and other determinants

Papaioannou, Elias - 2005

This paper uses a large panel of bilateral bank flow data to assess how institutions and politics affect international capital -bank in particular- flows. The following key findings emerge: 1) The empirical "gravity" model is the benchmark in explaining the volume of international banking...

Persistent link: https://www.econbiz.de/10011604483

Cross-border lending contagion in multinational banks

Derviz, Alexis; Podpiera, Jirí - 2007

We study both theoretically and empirically the inter- dependence of lending decisions in different country branches of a multinational bank. First, we model a bank that delegates the management of its foreign unit to a local manager with non-transferable skills. The bank differs from other...

Persistent link: https://www.econbiz.de/10011604853

The great liquidity freeze: What does it mean for international banking?

Domanski, Dietrich; Turner, Philip - 2011

In mid-September 2008, following the bankruptcy of Lehman Brothers, international interbank markets froze and interbank lending beyond very short maturities virtually evaporated. Despite massive central bank support operations and purchases of key assets, many financial markets remained impaired...

Persistent link: https://www.econbiz.de/10010279794

Risks in US bank international exposures

Cetorelli, Nicola; Goldberg, Linda - 2006

U.S. banks have substantial exposure to foreign markets such as Europe and Latin America. In this paper, we show how …

Persistent link: https://www.econbiz.de/10010283419

Global banks and international shock transmission: Evidence from the crisis

Cetorelli, Nicola; Goldberg, Linda S. - 2010

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 … interbank, cross-border lending. Policy interventions, such as the Vienna Initiative introduced in Europe, influenced the …

Persistent link: https://www.econbiz.de/10010287023