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Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?

Author Info

Listed author(s):
  • RALPH HAAS
  • IMAN LELYVELD

Abstract

We use data on the 48 largest multinational banking groups to compare the lending of their 199 foreign subsidiaries during the Great Recession with lending by a benchmark of 202 domestic banks. Contrary to earlier and more contained crises, parent banks were not a significant source of strength to their subsidiaries during 2008–09. When controlling for other bank characteristics, multinational bank subsidiaries had to slow down credit growth almost three times as fast as domestic banks. This was in particular the case for subsidiaries of banking groups that relied more on wholesale funding.

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File URL: http://hdl.handle.net/10.1111/jmcb.12094
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 46 (2014)
Issue (Month): s1 (02)
Pages: 333-364

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Handle: RePEc:wly:jmoncb:v:46:y:2014:i:s1:p:333-364
Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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Find related papers by JEL classification:
  • F15 - International Economics - - Trade - - - Economic Integration
  • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
  • 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

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