Banking on foreigners : the behavior of international Bank lending to Latin America, 1985-2000
AbstractRising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks transmit shocks from their home countries and changes in their claims on other countries spill over to individual hosts. However, lending has become less"indiscriminate"and more responsive to host conditions over time. Responsiveness to the latter becomes less"pro-cyclical"as exposure increases. Finally, foreign bank lending reacts more to positive than to negative host shocks and is not significantly curtailed during crises.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2893.
Date of creation: 30 Sep 2002
Date of revision:
Banks&Banking Reform; Financial Intermediation; Economic Theory&Research; Payment Systems&Infrastructure; Financial Crisis Management&Restructuring; Banks&Banking Reform; Financial Intermediation; Financial Crisis Management&Restructuring; Economic Theory&Research; Insurance&Risk Mitigation;
Other versions of this item:
- Andrew Powell & María Soledad Martinez Peria & Ivanna Vladkova, 2002. "Banking on Foreigners: The Behaviour of International Bank Lending to Latin America, 1985-2000"," Business School Working Papers veintiseis, Universidad Torcuato Di Tella.
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