International spillovers and local credit cycles

Yusuf Baskaya, Julian di Giovanni, Sebnem Kalemli-Özcan and Mehmet Ulu

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: This paper studies the transmission of the Global Financial Cycle (GFC) to domestic credit market conditions in a large emerging market, Turkey, over 2003-13. We use administrative data covering the universe of corporate credit transactions matched to bank balance sheets to document four facts: (1) an easing in global financial conditions leads to lower borrowing costs and an increase in local lending; (2) domestic banks more exposed to international capital markets transmit the GFC locally; (3) the fall in local currency borrowing costs is larger than foreign currency borrowing costs due to the comovement of the uncovered interest rate parity (UIP) premium with the GFC over time; (4) data on posted collateral for new loan issuances show that collateral constraints do not relax during the boom phase of the GFC.

Keywords: Capital Flows; VIX; Risk Premium; Bank Credit; Firm Heterogeneity (search for similar items in EconPapers)
JEL-codes: E0 F0 F1 (search for similar items in EconPapers)
Date: 2017-02, Revised 2020-09
New Economics Papers: this item is included in nep-ban and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
https://econ-papers.upf.edu/papers/1559.pdf Whole Paper (application/pdf)

Related works:
Journal Article: International Spillovers and Local Credit Cycles (2022)
Working Paper: International Spillovers and Local Credit Cycles (2017)
Working Paper: International Spillovers and Local Credit Cycles (2017)
Working Paper: International Spillovers and Local Credit Cycles (2017)
Working Paper: International Spillovers and Local Credit Cycles (2017)
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:upf:upfgen:1559

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).