Capital Flows and the International Credit Channel

Mehmet Ulu, Sebnem Kalemli-Özcan, Yusuf Baskaya, José-Luis Peydró and Julian di Giovanni
Authors registered in the RePEc Author Service: Jose-Luis Peydro

No 952, Working Papers from Barcelona School of Economics

Abstract: We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalised banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post 2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks' external borrowing for domestic credit growth.

Keywords: Capital flows; bank-lending channel; bank heterogeneity (search for similar items in EconPapers)
JEL-codes: E0 F0 F1 (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-ban, nep-cwa, nep-ifn and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (107)

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Related works:
Journal Article: Capital flows and the international credit channel (2017)
Journal Article: Capital Flows and the International Credit Channel (2017)
Working Paper: Capital Flows and the International Credit Channel (2017)
Working Paper: Capital flows and the international credit channel (2017)
Chapter: Capital Flows and the International Credit Channel (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:952

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