Niepmann, Friederike; Schmidt-Eisenlohr, Tim - Federal Reserve Bank of New York - 2013
use bank guarantees also varies systematically with global conditions, expanding when aggregate risk is higher and funding … is cheaper. The response of bank trade finance to changes in these macro factors is heterogeneous, however. In countries … with intermediate levels of credit risk, which rely the most on bank guarantees, bank trade finance adjusts the least. We …