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Capital Flows and the International Credit Channel

In: NBER International Seminar on Macroeconomics 2016

Author

Listed:
  • Yusuf Soner Baskaya
  • Julian di Giovanni
  • Şebnem Kalemli-Özcan
  • José-Luis Peydro
  • Mehmet Fatih Ulu

Abstract

We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalised banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post 2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks’ external borrowing for domestic credit growth.
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Suggested Citation

  • Yusuf Soner Baskaya & Julian di Giovanni & Şebnem Kalemli-Özcan & José-Luis Peydro & Mehmet Fatih Ulu, 2016. "Capital Flows and the International Credit Channel," NBER Chapters, in: NBER International Seminar on Macroeconomics 2016, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:13821
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    as
    1. Yusuf Soner Baskaya & Julian di Giovanni & Sebnem Kalemli-Özcan & Mehmet Fatih Ulu, 2017. "International spillovers and local credit cycles," Economics Working Papers 1559, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2020.
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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • F0 - International Economics - - General
    • F1 - International Economics - - Trade

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