How should we bank with foreigners? An empirical assessment of lending behavior of international banks to six East Asian economies

Victor Pontines and Reza Siregar

International Review of Economics & Finance, 2014, vol. 29, issue C, 552-568

Abstract: We construct macro-and micro-panel data on international bank lending to six Asian economies—Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand—over the period 2000 to 2010 to analyze a number of objectives. The paper first examines the critical determinants not only to overall international bank lending but also to cross-border bank lending, and find that cross-border lending by international banks tend to pull out from host economies during difficult times in source economies, whereas such retrenchments are not evident on the basis of overall lending. The paper next examines the differences between subsidiaries and branches of international banks in their ability to shield themselves from the financial difficulties of their global parent banks and thus their ability to continue lending in destination markets. The results show that foreign bank subsidiaries are more capable in this regard.

Keywords: International bank lending; Cross-border lending; International bank exposure; Asian economies (search for similar items in EconPapers)
JEL-codes: C23 F34 F36 G15 N25 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056013000890
Full text for ScienceDirect subscribers only

Related works:
Book: How Should We Bank With Foreigners? An Empirical Assessment of Lending Behaviour of International Banks to Six East Asian Economies (2012)
Working Paper: How Should We Bank With Foreigners?—An Empirical Assessment of Lending Behavior of International Banks to Six East Asian Economies (2012)
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:reveco:v:29:y:2014:i:c:p:552-568

DOI: 10.1016/j.iref.2013.08.006

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().