Capital flows and the international credit channel

Yusuf Baskaya, Julian di Giovanni, Şebnem Kalemli-Özcan, Jose-Luis Peydro and Mehmet Ulu

Journal of International Economics, 2017, vol. 108, issue S1, S15-S22

Abstract: We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post-2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks' external borrowing for domestic credit growth.

Keywords: Capital flows; Bank-lending channel; Bank heterogeneity (search for similar items in EconPapers)
JEL-codes: E0 F0 F1 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (97)

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Related works:
Journal Article: Capital Flows and the International Credit Channel (2017)
Working Paper: Capital Flows and the International Credit Channel (2017)
Working Paper: Capital Flows and the International Credit Channel (2017)
Working Paper: Capital flows and the international credit channel (2017)
Chapter: Capital Flows and the International Credit Channel (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:108:y:2017:i:s1:p:s15-s22

DOI: 10.1016/j.jinteco.2016.12.003

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