Geographic diversification and bank lending during crises

• 成果类型: Article
• 署名作者: Doerr, Sebastian; Schaz, Philipp
• 署名单位: Bank for International Settlements (BIS); Leibniz Association; DIW Berlin - Deutsches Institut fur Wirtschaftsforschung
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.02.004
• 发表日期: 2021
• 页码: 768-788
• 关键词: Global banks; diversification; syndicated loans; Financial crisis

摘要

We classify a large sample of banks according to the geographic diversification of their international syndicated loan portfolio. We show that diversified banks maintain higher loan supply during banking crises in borrower countries. Positive loan supply effects lead to higher firm investment and employment growth. Diversified banks are stabilizing due to their ability to raise additional funding during times of distress. Distinguishing banks by nationality reveals that diversified domestic banks are a stable source of funding, while foreign banks with little diversification are fickle. Findings suggest that declining financial integration makes countries more vulnerable to local financial shocks. (c) 2021 Elsevier B.V. All rights reserved.