Maskay, Nephil Matangi; Steinkamp, Sven; Westermann, Frank - 2014
In this paper, we investigate whether foreign currency accounts help overcome credit constraints in developing … countries. We analyze a novel bank-level data set from Nepal, where a steady inflow of remittances has contributed to foreign … currency deposits on commercial bank balance sheets. In this data set we find that: (i) Banks hedge their FX exposure by …