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This paper analyses cross-border contagion in a sample of European banks from January 1994 to January 2003. We use a … bank. We find evidence in favour of significant cross-border contagion. We also find some evidence that since the … introduction of the euro cross-border contagion may have increased. The results seem to be very robust to changes in the …
Persistent link: https://www.econbiz.de/10011604708
In this paper we examine the role of syndicated loan markets in financial market development in 24 European countries. We find credit spreads to be negatively related to market size in small markets and positively related in large financial markets. Syndicated loans play a different role in...
Persistent link: https://www.econbiz.de/10013158058
This paper uses a unique dataset where credit rejections experienced by euro area firms are matched with firm and bank characteristics. This allows us to study simultaneously the role that bank and firm weakness had in the credit reduction observed in the euro area during the sovereign debt...
Persistent link: https://www.econbiz.de/10012150099
The global financial crisis has reignited the debate about the risks of financial globalization, in particular the international transmission of financial shocks. We use data on individual loans by the largest international banks to their various countries of operation to examine whether banks'...
Persistent link: https://www.econbiz.de/10013131054
The global financial crisis and the related sharp reduction in cross-border credit have reignited the debate about the risks of financial globalization. We use loan-level data on lending by the largest international banks to their various countries of operation to examine how banks reduced...
Persistent link: https://www.econbiz.de/10013113689
I examine U.S. firms' motives for participating in cross-border syndicated loans with foreign banks. Firms borrowing from foreign lead arrangers pay higher interest rates on their loans compared to firms borrowing from local banks, controlling for firm and loan characteristics and using matched...
Persistent link: https://www.econbiz.de/10012270749
on the period since 2014 and on the banking sectors that dominate financial systems in this group of countries. It …
Persistent link: https://www.econbiz.de/10011645431
Global banks use their global balance sheets to respond to local monetary policy. However, sources and uses of funds are often denominated in different currencies. This leads to a foreign exchange (FX) exposure that banks need to hedge. If cross-currency flows are large, the hedging cost...
Persistent link: https://www.econbiz.de/10011687276
2016 (unless the analysis requires a longer time span) and on the banking sectors that dominate financial systems in this … calls for continued efforts to promote the use of domestic currencies in the financial system. At the same time, banking … a period of heightened financial stress during 2018 and, while its banking system appears to have sufficient buffers to …
Persistent link: https://www.econbiz.de/10012110105
After Lehman Brothers filed for bankruptcy in September 2008, cross-border bank lending contracted sharply. To explain the severity and variation in this contraction, we analyze detailed data on cross-border syndicated lending by 75 banks to 59 countries. We find that banks that had to write...
Persistent link: https://www.econbiz.de/10013112262