Foreign bank presence: Helping or hurting when financial contagion strikes?
Rudiger Ahrend and
Antoine Goujard
Economics Letters, 2013, vol. 120, issue 2, 314-317
Abstract:
The spreading of the 2007–09 global financial crisis has highlighted the need to increase the resilience of the financial sector to contagion shocks. Debt financed by foreign banks has been found to increase the financial fragility of the borrowing country in situations of financial contagion, but effects could differ with the structure of the banking sector in the borrowing country. Using bilateral bank flows over the 1983–2011 period, we show that external bank flows towards foreign-controlled banks have been more stable than flows towards domestically-owned banks and firms during financial contagion shocks.
Keywords: Foreign banks; Bank subsidiaries; Financial contagion (search for similar items in EconPapers)
JEL-codes: F34 F36 F42 G15 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016517651300222X
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:120:y:2013:i:2:p:314-317
DOI: 10.1016/j.econlet.2013.04.044
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().