When Is U.S. Bank Lending to Emerging Markets Volatile?

Linda Goldberg

No 8209, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper: 1) characterizes the size and portfolio diversification patterns of the U.S. banks engaging in foreign lending; and 2) econometrically explores the determinants of fluctuations in U.S. bank claims on a broad set of countries. U.S. bank claims on Latin American and Asian emerging markets, and on industrialized countries, are sensitive to U.S. macroeconomic conditions. When the United States grows rapidly, there is substitution between claims on industrialized countries and claims on the United States. The pattern of response of claims on emerging markets to U.S. conditions differs across banks of different sizes and across emerging market regions. Moreover, unlike U.S. bank claims on industrialized countries, we find that claims on emerging markets are not highly sensitive to local country GDP and interest rates.

JEL-codes: F3 F4 (search for similar items in EconPapers)
Date: 2001-04
New Economics Papers: this item is included in nep-fmk
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

Published as When Is US Bank Lending to Emerging Markets Volatile? , Linda S. Goldberg. in Preventing Currency Crises in Emerging Markets , Edwards and Frankel. 2002

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Related works:
Chapter: When Is US Bank Lending to Emerging Markets Volatile? (2002)
Working Paper: When is U.S. bank lending to emerging markets volatile? (2001)
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