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International financial flows are the propagation mechanism for transmitting financial instability across borders. They are also the source of unsustainable external debt. Managing volatility thus requires institutions that promote domestic financial stability, ensure that domestic instability...
Persistent link: https://www.econbiz.de/10010266563
This paper analyzes the contagion effects associated with the failure of Silicon Valley Bank (SVB) and identifies bank … held-to-maturity securities, bank size, and cash holdings had a significant impact, while better-quality assets or holdings … rate hikes nor risks linked to bank size. While mid-sized banks experienced particular stress immediately after the SVB …
Persistent link: https://www.econbiz.de/10014540982
has significant real effects, especially for bank-dependent firms. …
Persistent link: https://www.econbiz.de/10015189282
national banking system has sharply increased. This paper examines the banking equilibrium in a model with optimizing banks and …-fulfilling shifts in sentiments, where sovereign default also causes a banking crisis. In an adverse equilibrium, sovereign risk shocks … simultaneously raise bank funding costs and drive banks to increase their purchases of domestic debt, crowding out bank lending …
Persistent link: https://www.econbiz.de/10013370119
banking sector environment, as well as the institutional and regulatory environment, on credit constrained firms. We find that … constrained in 2008-2009 than in 2012-2014. The banking sector's environment analysis reveals that firms operating in more … concentrated banking markets are less likely to be credit constrained. However, higher capital requirements, increased levels of …
Persistent link: https://www.econbiz.de/10013370124
We explore the impact of low and negative monetary policy rates in core world economies on bank lending in four small … open economies - Canada, Chile, the Czech Republic and Norway - using confidential bank-level data. Our results show that …, consistent with an international bank lending channel. These results have important policy implications, suggesting that central …
Persistent link: https://www.econbiz.de/10013373823
do not drive these results. Furthermore, the substitution from bank to nonbank credit has firm-level real effects …
Persistent link: https://www.econbiz.de/10014480720
Bartik instrument for capital inflows. Our results suggest that foreign funds boost bank lending to the domestic economy …. This result is due to the positive effect of capital inflows on bank lending to non-financial firms and to other domestic …
Persistent link: https://www.econbiz.de/10012040362
US net capital inflows drive the international synchronization of house price growth. An increase (decrease) in US net capital inflows improves (tightens) US dollar funding conditions for non-US global banks, leading them to increase (decrease) foreign lending to third-party borrowing countries....
Persistent link: https://www.econbiz.de/10012420688
detailed bank-level data we show how Norwegian and Swedish banks' lending reacts to monetary policy surprises arising abroad …
Persistent link: https://www.econbiz.de/10012661562