Foreign Banks and International Transmission of Monetary Policy : Evidence from the Syndicated Loan Market / Asli Demirquc-Kunt
Mitwirkende(r): Resource type: Ressourcentyp: Buch (Online)Buch (Online)Sprache: Englisch Reihen: World Bank E-Library ArchiveVerlag: Washington, D.C : The World Bank, 2017Beschreibung: 1 Online-Ressource (53 p)Andere physische Formen: Erscheint auch als: Foreign Banks and International Transmission of Monetary Policy: Evidence from the Syndicated Loan Market. Druck-Ausgabe Washington, D.C : The World Bank, 2017DOI: DOI: 10.1596/1813-9450-7937Online-Ressourcen: Zusammenfassung: This paper uses loan-level data from 124 countries over 1995-2015 to examine the transmission of monetary policy through the cross-border syndicated loan market. The results show that the expansion of monetary policy increases cross-border credit supply especially to weaker firms. However, greater foreign bank presence in the borrower country appears to reduce the potentially destabilizing impact of lower policy interest rates on cross-border lending, as it attenuates increases in loan volume and maturity while magnifying increases in collateralization and covenant use. The mitigating effect of foreign banking presence in the borrowing country on the transmission of monetary policy is robust to controlling for borrower-country economic and financial development, and a range of borrower and lender country policies and institutions, including the strength of bank regulation and supervision, exchange rate flexibility, and restrictions on capital flows. The findings qualify the characterization of international banks as sources of credit instability, and suggest that foreign bank entry can improve the stability of cross-border credit in the face of international monetary policy shocksPPN: PPN: 1724871099Package identifier: Produktsigel: ZDB-1-WBADieser Titel hat keine Exemplare