scholarly journals Foreign bank lending and bond underwriting in Japan during the lost decade

2009 ◽  
pp. 196-214
Author(s):  
Jose Lopez ◽  
Mark Spiegel
Keyword(s):  
Bank Lending ◽  
Foreign Bank ◽  
Lost Decade ◽  
Bond Underwriting

Foreign Banks in the Crisis

2017 ◽  
Author(s):  
Rachel A. Epstein
Keyword(s):  
Financial Crisis ◽  
Central Europe ◽  
Bank Lending ◽  
Foreign Ownership ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Market Model ◽  
Unexpected Finding ◽  
East Central Europe ◽  
East Central

One reason governments have protected their banks from foreign ownership is that they feared foreign-owned banks would “cut and run”—i.e. abandon their host markets—in a financial crisis. An unexpected finding of this chapter, however, is that while foreign banks’ commitments to host markets have indeed been fleeting in crises, those commitments were weakest when the relationship between foreign banks and host markets was not characterized by ownership. Thus it was foreign ownership through a “second home market” model and bank subsidiaries during the acute phase of the US financial crisis (2008–9) that saved East Central Europe from economic catastrophe. In Western Europe, meanwhile, where foreign bank ownership levels were low but cross-border lending was significant, bank lending retreated behind national borders. This chapter also rejects the argument that the Vienna Initiative, a voluntary bank rollover agreement, compelled foreign-owned banks to maintain their exposures in East Central Europe.

scholarly journals Determinants of loans and deposits strategies of foreign bank subsidiaries in emerging countries

2013 ◽  
Vol 3 (2) ◽  
pp. 29-45
Author(s):  
Mehdi Mili ◽  
Jean-Michel Sahut
Keyword(s):  
Bank Lending ◽  
Emerging Countries ◽  
Market Discipline ◽  
Foreign Bank ◽  
Path Model ◽  
Foreign Banks ◽  
Foreign Subsidiaries ◽  
Factors Affecting ◽  
Macroeconomic Variables ◽  
Financial Variables

Abstract. This paper focuses on the transmission of bank liquidity shocks in Loan and deposit in emerging markets. First, we attempt to identify factors affecting the credit strategy of foreign banks in emerging countries. Second, we test whether depositors exert market discipline on foreign subsidiaries. By combining financial variables of subsidiaries and their parent banks and macroeconomic variables of host and home countries, we investigate the factors that may affect the behavior of depositors. Our empirical approach is based on a Partial Least Squares-Path model that allows us to indentify the causal relationships between the various groups of variables. Our results show that foreign bank lending is determined by the specific financial variables of the parent bank and macroeconomic variables of the country of origin. This support that the strategy's credit of foreign subsidiary is centrally managed at the parent bank and credit supply of subsidiaries depends primary on the financial situation of its parent bank. Finally we find evidence of market discipline exercised over foreign subsidiaries in emerging countries. We show that market discipline is strongly affected by the specific characteristics of the subsidiary.

scholarly journals IMPACT OF GLOBAL FINANCIAL SHOCK TO INTERNATIONAL BANK LENDING IN INDONESIA

2012 ◽  
Vol 15 (2) ◽  
pp. 75-110
Author(s):  
Tumpak Silalahi ◽  
Wahyu Ari Wibowo ◽  
Linda Nurlian
Keyword(s):  
Financial Crisis ◽  
Balance Sheet ◽  
Bank Lending ◽  
Developed Countries ◽  
Foreign Bank ◽  
International Bank ◽  
Global Banking ◽  
Foreign Affiliates ◽  
Push And Pull ◽  
The Impact

This study intends to determine whether a shock that occurred in developed countries, the source of funding, was transmitted to Indonesia through international bank lending both directly and indirectly. The methods used estimated the determinants of international bank lending. International bank lending is one form of capital flows that have the potential for rapid reversal and that can lead to a financial crisis as it has in the past. Understanding the determinants of bank lending is important as it can be used to mitigate the impact of a financial crisis in the future. The empirical results showed that international bank lending, either directly or indirectly, contributed to the Indonesian crisis. During the shock, Indonesia saw global banking contract financing. It was also found that credit activities by foreign affiliates in Indonesia saw a contraction in the country of the parent bank during the shock. However, it was found that the bank lending by foreign affiliates, as joint ventureswere more stable compared to the branch offices of a foreign bank. In aggregate, international bank lending is affected by push and pulls factors such as economic growth (in developed countries and Indonesia), risk factors, and liquidity conditions, both in Indonesia and globally. As for micro-banking models, other than the push and pull factors, the bank balance sheet and other portfolio assets also affected bank lending activities to Indonesia. Keywords: Global Financial Shocks, Foreign Affiliates, International Bank Lending, transmission path,dynamic panel.JEL Classification: C33, E51, G15

scholarly journals Foreign Bank Lending and Information Asymmetries in China

2010 ◽  
Author(s):  
Laurent Weill ◽  
Pierre Pessarossi ◽  
Christophe J. Godlewski
Keyword(s):  
Bank Lending ◽  
Foreign Bank ◽  
Information Asymmetries
Sign in / Sign up

Export Citation Format

Share Document