International Banking and Liquidity Risk Transmission: Lessons from Across Countries
Claudia Buch and
Linda Goldberg ()
IMF Economic Review, 2015, vol. 63, issue 3, 377-410
Activities of international banks are at the core of discussions on the causes and effects of the global financial crisis. The International Banking Research Network (IBRN), established in 2012, brings together researchers from around the world with access to microdata on individual banks to investigate key issues. This paper summarizes the common methodology and results of case studies conducted in 11 countries to analyze the impact of liquidity shocks on bank lending, both domestic and foreign. Four main insights are established. First, liquidity conditions affecting parent banks transmit into both the domestic and foreign lending of these banks. Second, the ex ante balance sheet composition of banks and banks’ business models influence their responses to liquidity risk. No single balance sheet characteristic consistently plays a role in liquidity risk transmission. Third, internal liquidity management within multinational banks can alter the domestic lending effects of liquidity risk. Fourth, the availability of official sector liquidity tends to reduce the adverse consequences of private liquidity conditions for bank lending during stress periods and to weaken the impact of bank balance sheet constraints.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49) Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/imfer/journal/v63/n3/pdf/imfer201529a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfer/journal/v63/n3/full/imfer201529a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
Working Paper: International banking and liquidity risk transmission: lessons from across countries (2014)
Working Paper: International Banking and Liquidity Risk Transmission: Lessons from Across Countries (2014)
Working Paper: International banking and liquidity risk transmission: Lessons from across countries (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:imfecr:v:63:y:2015:i:3:p:377-410
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2
Access Statistics for this article
More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla ().