Global transmission channels for international bank lending in the 2007–09 financial crisist

Jonathon Adams-Kane, Yueqing Jia and Jamus Lim

Journal of International Money and Finance, 2015, vol. 56, issue C, 97-113

Abstract: During a financial crisis, credit provision by international banks may be affected by three global channels: changes in willingness to lend from increased economic uncertainty, in funding availability from interbank liquidity markets, and in solvency from weakened balance sheets. In this paper, we examine the extent to which each channel affected bank lending in developing countries during the global financial crisis of 2007–09. We find evidence that the liquidity and uncertainty channels were important, although lending sensitivity to these channels remained unchanged during the crisis. We also find heterogeneity in the lending behavior of European versus U.S. banks.

Keywords: International bank lending; Global transmission channels; Financial crisis (search for similar items in EconPapers)
JEL-codes: F34 G01 G21 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:56:y:2015:i:c:p:97-113

DOI: 10.1016/j.jimonfin.2014.11.020

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