How Do Credits Dollarize? The Role of Firm’s Natural Hedges, Banks’ Core and Non-Core Liabilities
Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey
We show that firms' natural hedges (e.g., export revenues) and banks' foreign currency (FX) liabilities strongly dollarize credits. In particular, banks' non-core FX liabilities (e.g., syndications) in average feed credit dollarization almost three times more than their core FX liabilities (e.g., deposits). More importantly, these channels are affected differently by local and global macroeconomic conditions.
Keywords: Credit dollarization; Liability dollarization; Deposit dollarization (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
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Journal Article: How do credits dollarize? The role of firm’s natural hedges, banks’ core and non-core liabilities (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:2001
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