What drives bank-intermediated trade finance? Evidence from cross-country analysis

Jose Maria Serena Garralda and Garima Vasishtha

No 1524, Working Papers from Banco de España

Abstract: Empirical work on the underlying causes of the recent dislocations in bank-intermediated trade finance has been limited by the scant availability of hard data. This paper aims to analyse the key determinants of bank-intermediated trade finance using a novel dataset covering ten banking jurisdictions. It focuses on the role of global factors as well as country-specific characteristics in driving trade finance. Results indicate that country-specific variables, such as growth in trade flows and funds available for domestic banks, as well as global financial conditions and global import growth, are important determinants of trade finance. These results are robust to different model specifications. Further, we do not find that trade finance is more sensitive to global financial conditions than other loans to non-bank entities.

Keywords: bank-intermediated trade finance; trade flows; global financial crisis (search for similar items in EconPapers)
JEL-codes: F14 F19 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-09
New Economics Papers: this item is included in nep-ban and nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /15/Fich/dt1524e.pdf First version, September 2015 (application/pdf)

Related works:
Journal Article: What Drives Bank-Intermediated Trade Finance? Evidence from Cross-Country Analysis (2019)
Working Paper: What Drives Bank-Intermediated Trade Finance? Evidence from Cross-Country Analysis (2015)
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:bde:wpaper:1524

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().