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Connected to Whom? International Interbank Borrowing During the Global Crisis

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  • Kalin Tintchev

Abstract

The unprecedented collapse of international interbank borrowing was a prominent feature of the global financial crisis that started in August 2007. This paper focuses on the drivers of the retrenchment from 32 advanced and emerging banking systems. Using novel risk-weighted indexes the paper examines whether the banking systems’ access to credit was related to their domestic financial soundness and exposure to distressed international counterparties. The empirical findings suggest that both domestic and international risk factors contributed to the decline in international interbank borrowing during the crisis.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 13/14.

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Length: 33
Date of creation: 14 Jan 2013
Date of revision:
Handle: RePEc:imf:imfwpa:13/14

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Related research

Keywords: Banking systems; Global Financial Crisis 2008-2009; International banks; Borrowing; Developed countries; Emerging markets; Cross country analysis; Economic models; credit risk; banking statistics; bank for international settlements; interbank market; counterparty risks; risk aversion; risk measure; bank of england; bank borrowing; bank of spain; bank balance sheets; banking distress; bank liabilities; bank soundness; domestic liquidity; bank capital; risk premium; bank market discipline; imperfect information; segmentation; bank lending; bank of canada; risk model;

References

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