How do credits dollarize? The role of firm’s natural hedges, banks’ core and non-core liabilities

Fatih Yilmaz

Economics Letters, 2020, vol. 188, issue C

Abstract: We show that firms’ natural hedges and banks’ foreign currency (FX) liabilities strongly dollarize credits. Among bank liabilities, the effect of non-core FX liabilities is significantly larger than core FX liabilities. These channels are adversely affected by macroeconomic conditions.

Keywords: Credit dollarization; Liability dollarization; Deposit dollarization (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Working Paper: How Do Credits Dollarize? The Role of Firm’s Natural Hedges, Banks’ Core and Non-Core Liabilities (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176520300306

DOI: 10.1016/j.econlet.2020.108992

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