This paper provides first cross-country evidence on non-bank lending during crises. We show that non-banks contract their syndicated lending by over 50% more than banks during financial shocks in borrower countries. Establishing that non-banks serve riskier borrowers globally, we find that...

Using data on syndicated loans for a large sample of countries, this paper shows that non-banks curtail their credit by significantly more than banks during borrower-country crises. We provide novel evidence that differences in the value of lending relationships explain most of the gap, even...

We document that corporates in emerging markets borrow more in foreign currency when the local currency provides a better hedge in downturns. We develop an international corporate finance model in which firms facing adverse selection choose the foreign currency share of their debt. In the unique...