Crisis Transmission In The Global Banking Network
Download Crisis Transmission In The Global Banking Network full books in PDF, epub, and Kindle. Read online free Crisis Transmission In The Global Banking Network ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Crisis Transmission in the Global Banking Network
Author | : Galina Hale |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 2016-04-12 |
Genre | : Business & Economics |
ISBN | : 1475551347 |
Download Crisis Transmission in the Global Banking Network Book in PDF, Epub and Kindle
We study the transmission of financial sector shocks across borders through international bank connections. For this purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global network of interbank exposures. We estimate the effect of direct (first-degree) and indirect (second-degree) exposures to countries experiencing systemic banking crises on bank profitability and loan supply. We find that direct exposures to crisis countries squeeze banks' profit margins, thereby reducing their returns. Indirect exposures to crisis countries enhance this effect, while indirect exposures to non-crisis countries mitigate it. Furthermore, crisis exposures have real effects in that they reduce banks' supply of domestic and cross-border loans. Our results, based on a large global sample, support the notion that interconnected financial systems facilitate shock transmission.
Crisis Transmission in the Global Banking Network Related Books
Pages: 38
Pages:
Pages: 41
Pages: 59
Pages: 41