This study introduces Asian evidence on implications of foreign bank lending for financial shock transmission. The region's most recent experience of the Global Financial Crisis reveals that transmission through balance sheet adjustments and interbank markets is significant for global foreign...

This paper studies the recent (2007-2009) Global Financial Crisis and its transmission through bank lending to emerging Asian economies. It highlights two channels of shock transmission identified in the literature: bank ownership and liquidity. We find that the bank ownership does not play a...