Spillovers through banking centers: a panel data analysis of bank flows

Rijckeghem, Caroline Van; Weder, Beatrice

doi:10.1016/s0261-5606(03)00017-2

Cited by 173 publications

(101 citation statements)

References 17 publications

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“…Such a new channel does not arise, unless we consider credit-constrained FIs. This common lender e¤ect has been shown empirically by Kaminsky and Reinhart (2000) and Van Rijckeghem and Weder (2003). Figure 2 and Table 1 provide supporting evidence.…”

Section: Introductionsupporting

confidence: 74%

Banking Globalization and International Business Cycles

Ueda¹

2010

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This paper constructs a two-country DSGE model to study the nature of the recent financial crisis and its effects that spread immediately throughout the world owing to the globalization of banking. In the model, financial intermediaries (FIs) enter into chained credit contracts at home and abroad, engaging in cross-border lending to entrepreneurs by undertaking crossborder borrowing from investors. The FIs as well as the entrepreneurs in two countries are credit constrained, so all of their net worths matter. Our model reveals that under FIs' globalization, adverse shocks that hit one country affect the other, yielding business cycle synchronization on both the real and financial sides. It also suggests that the FIs' globalization, net worth shock, and credit constraints are key to understanding the recent financial crisis.JEL codes: E22, E32, E44, E52, F41

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Section: Introductionsupporting

confidence: 74%

Banking Globalization and International Business Cycles

Ueda¹

2010

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“…11 Positive spillovers in the earlier sub-sample period that was dominated by various financial crises is largely consistent with Van Rijckeghem and Weder's (2003) finding that banks withdraw from even non-crisis hit countries when they suffer losses in some other markets during financial crises. This change in the direction of rating spillovers can be interpreted in two ways.…”

Section: Insert Table 4]supporting

confidence: 58%

International Bank Flows to Emerging Markets: Influence of Sovereign Credit Ratings and Their Regional Spillover Effects

Kim

2017

World Scientific Studies in International Economics

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We examine whether changes in sovereign credit assessments help to determine international bank flows to emerging countries. We focus on the banking flows of G7 countries to a sample of 55 emerging market borrowers for 1995-2008. We find evidence indicating that sovereign credit rating revisions have significant and positive influences on international bank flows from developed markets even after controlling for other determinants. In addition, we find strong regional rating spillover effects. Ratings improvements in one emerging market region tends to reduce bank flows to the other regions. However, there is an exception from the Asia Pacific to Eastern Europe.JEL classification: E44, E65, F33, F34, G15

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“…Recent empirical studies, for example, have emphasised that banking liquidity has a positive effect on economic growth (for a review see Levine, 2004). Other studies have highlighted that capital inflows are not risk-free assets and have shown a strong relation between the volume of capital movements -bank flows included -and some recent financial crises characterised by sudden crashes and highly dollarised economies (Van Rijckeghem and Weder, 2003;Calvo et al, 2004;Eichengreen and Hausmann, 2005).…”

Section: Markets: a Reviewmentioning

confidence: 99%

Banking on Democracy

Rodríguez

Santisó

2007

OECD Development Centre Working Papers

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Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2, rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS DOCUMENT ARE THE SOLE RESPONSIBILITY OF THE AUTHORS AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAILCette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre de développement. Ces documents ne sont disponibles que dans leur langue originale, anglais ou français ; un résumé du document est rédigé dans l'autre langue.Tout commentaire relatif à ce document peut être adressé au Centre de développement de l'OCDE, 2, rue André Pascal, 75775 PARIS CEDEX 16, France; ou à dev.contact@oecd.org. Les documents peuvent être téléchargés à partir de: http://www.oecd.org/dev/wp ou obtenus via le mél (dev.contact@oecd.org).

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Spillovers through banking centers: a panel data analysis of bank flows

Cited by 173 publications

References 17 publications

Banking Globalization and International Business Cycles

Banking Globalization and International Business Cycles

International Bank Flows to Emerging Markets: Influence of Sovereign Credit Ratings and Their Regional Spillover Effects

Banking on Democracy

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