Capital Inflows, Sovereign Debt and Bank Lending: Micro-Evidence from an Emerging Market

• 成果类型: Article
• 署名作者: Williams, Tomas
• 署名单位: George Washington University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy026
• 发表日期: 2018
• 页码: 4958
• 关键词: liquidity shocks evidence; international transmission; ACCOUNT LIBERALIZATION; monetary-policy; channel; GROWTH; times; RISK

摘要

This paper uses a natural experiment to show that government access to foreign credit increases private access to credit. I identify a sudden, and unanticipated increase in capital inflows to the sovereign debt market in Colombia, due to a rebalancing in a government bond index by J.P. Morgan. I find that market makers banks in the treasury market reduced their sovereign debt by 7.8 percentage points of assets and increased their credit availability by 4.2 percentage points of assets. Using industry level data, I show that a higher exposure to market makers led to a higher growth in economic activity.