Shock Transmission Through Cross-Border Bank Lending: Credit and Real Effects

• 成果类型: Article
• 署名作者: Hale, Galina; Kapan, Tumer; Minoiu, Camelia
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco; International Monetary Fund; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz147
• 发表日期: 2020
• 页码: 4839
• 关键词: Sovereign debt crisis; firm-level evidence; international transmission; business cycles; liquidity; MARKET; RISK; INVESTMENT; management; contagion

摘要

We study the transmission of financial shocks across borders through international bank connections. Using data on cross-border interbank loans among 6,000 banks during 1997-2012, we estimate the effect of asset-side exposures to banks in countries experiencing systemic banking crises on profitability, credit, and the performance of borrower firms. Crisis exposures reduce bank returns and tighten credit conditions for borrowers, constraining investment and growth. The effects are larger for foreign borrowers, including in countries not experiencing banking crises. Our results document the extent of cross-border crisis transmission, but also highlight the resilience of financial networks to idiosyncratic shocks.