The domestic credit supply response to international bank deleveraging [electronic resource] : Is Asia different? / Shekhar Aiyar and Sonali Jain-Chandra.

By:

Aiyar, Shekhar

Contributor(s):

Material type: Text

TextSeries: IMF working paper ; WP/12/258.Publication details: Washington, D.C. : International Monetary Fund, Asia and Pacific Dept., 2012.Description: 1 online resource (15 p.)ISBN:

9781475562347 (electronic bk.)
1475562349 (electronic bk.)

Subject(s):

Genre/Form:

Electronic books.

DDC classification:

332.1095 23

LOC classification:

HG3252

Online resources:

EBSCOhost

Summary: "During the global financial crisis, European banks contracted foreign claims on recipient economies sharply. This paper examines the impact of that deleveraging on credit supply in recipient economies, with a particular focus on Asia. Identification is achieved by exploiting heterogeneity in ex-ante patterns of funding reliance on different European banking systems, and in variation in the ratio of local claims in local currency to total foreign claims in recipient economies. These sources of variation are used to create instruments for the deleveraging shock. The authors find that the contraction in European bank foreign claims was associated with a substantial reduction in domestic credit supply in a broad sample of countries. However, the credit supply response in Asia was only about half the size of the response in non-Asian countries, possibly due to a more robust policy response and healthier local bank balance sheets at the outset of the crisis."- -Abstract.

Holdings ( 1 )
Title notes ( 2 )

Holdings
Item type	Current library	Collection	Call number	Status	Date due	Barcode	Item holds
eBook	e-Library	EBSCO Business		Available

Total holds: 0

"October 2012".

"During the global financial crisis, European banks contracted foreign claims on recipient economies sharply. This paper examines the impact of that deleveraging on credit supply in recipient economies, with a particular focus on Asia. Identification is achieved by exploiting heterogeneity in ex-ante patterns of funding reliance on different European banking systems, and in variation in the ratio of local claims in local currency to total foreign claims in recipient economies. These sources of variation are used to create instruments for the deleveraging shock. The authors find that the contraction in European bank foreign claims was associated with a substantial reduction in domestic credit supply in a broad sample of countries. However, the credit supply response in Asia was only about half the size of the response in non-Asian countries, possibly due to a more robust policy response and healthier local bank balance sheets at the outset of the crisis."- -Abstract.