International Shock Transmission after the Lehman Brothers Collapse. Evidence from Syndicated Lending
AbstractAfter Lehman Brothers filed for bankruptcy in September 2008, cross-border bank lending contracted sharply. To explain the severity and variation in this contraction, we analyze detailed data on cross-border syndicated lending by 75 banks to 59 countries. We find that banks that had to write down sub-prime assets, refinance large amounts of long-term debt, and experienced sharp declines in their market-to-book ratio, transmitted these shocks across borders by curtailing their lending abroad. While shocked banks differentiated between countries in much the same way as less constrained banks, they restricted their lending more to small borrowers.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36001.
Date of creation: 17 Jan 2012
Date of revision:
Cross-border lending; bank-funding shocks; crisis transmission;
Other versions of this item:
- Ralph De Haas & Neeltje Van Horen, 2012. "International Shock Transmission after the Lehman Brothers Collapse: Evidence from Syndicated Lending," American Economic Review, American Economic Association, vol. 102(3), pages 231-37, May.
- Ralph De Haas & Neeltje Van Horen, 2012. "International shock transmission after the Lehman Brothers collapse – evidence from syndicated lending," Working Papers 142, European Bank for Reconstruction and Development, Office of the Chief Economist.
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-BAN-2012-01-25 (Banking)
- NEP-FMK-2012-01-25 (Financial Markets)
- NEP-MAC-2012-01-25 (Macroeconomics)
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