International Banking and Liquidity Risk Transmission: Evidence from Poland

Małgorzata Pawłowska, Dobromił Serwa () and Slawomir Zajaczkowski

IMF Economic Review, 2015, vol. 63, issue 3, 585-605

Abstract: This study analyzes the effect of liquidity risk in large international banks and its transmission to Polish subsidiaries and branches of these international banks in recent years. Polish banks reacted to the increase of liquidity risk within the markets where the parent institutions were located. Foreign-owned banks with higher net liabilities from their parent institutions received more funding from abroad and supplied more loans, including FX housing loans, than other banks in response to the shocks occurring during the global financial crisis. Lending and foreign funding of locally owned banks was also affected by liquidity risk. The results suggest that intragroup links between banking institutions can serve both as an important channel for the international transmission of liquidity risk and as a stabilizing mechanism during liquidity crises.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.palgrave-journals.com/imfer/journal/v63/n3/pdf/imfer201523a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfer/journal/v63/n3/full/imfer201523a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
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:pal:imfecr:v:63:y:2015:i:3:p:585-605

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 () and Springer Nature Abstracting and Indexing ().