When is U.S. Bank Lending to Emerging Markets Volatile?
27 Pages Posted: 10 Aug 2006
There are 2 versions of this paper
When is U.S. Bank Lending to Emerging Markets Volatile?
When is U.S. Bank Lending to Emerging Markets Volatile?
Date Written: March 2001
Abstract
Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper 1) characterizes the size and portfolio diversification patterns of the U.S. banks engaging in foreign lending, and 2) econometrically explores the determinants of fluctuations in U.S. bank claims on a broad set of countries. U.S. bank claims on Latin American and Asian emerging markets, and on industrialized countries, are sensitive to U.S. macroeconomic conditions. When the United States grows rapidly, there is substitution between claims on industrialized countries and claims on the United States. The pattern of response of claims on emerging markets to U.S. conditions differs across banks of different sizes and across emerging market regions. Moreover, we find that, unlike U.S. bank claims on industrialized countries, claims on emerging markets are not highly sensitive to local country GDP and interest rates.
Keywords: bank, loan, lend, emerging market, international
JEL Classification: F3, F4, G0
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Role of Banks in Reducing the Costs of Financial Distress in Japan
By Takeo Hoshi, Anil K. Kashyap, ...
-
The International Transmission of Financial Shocks: The Case of Japan
By Joe Peek and Eric S. Rosengren
-
Foreign and Domestic Bank Participation in Emerging Markets: Lessons from Mexico and Argentina
By Linda S. Goldberg, B. Gerard Dages, ...
-
Foreign and Domestic Bank Participation in Emerging Markets: Lessons from Mexico and Argentina
By B. Gerard Dages, Linda S. Goldberg, ...
-
Do Banks Follow Their Customers Abroad?
By Daniel E. Nolle and Rama Seth
-
Foreign Direct Investment, Trade and Real Exchange Rate Linkages in Developing Countries
-
By Jennifer Crystal, B. Gerard Dages, ...
-
Retail Banking in Hungary: A Foreign Affair?
By John Bonin and Istvan Abel