Arbeitspapier

International banking and liquidity risk transmission: Lessons from across countries

Activities of international banks have been at the core of discussions on the causes and effects of the international financial crisis. Yet we know little about the actual magnitudes and mechanisms for transmission of liquidity shocks through international banks, including the reasons for heterogeneity in transmission across banks. The International Banking Research Network, established in 2012, brings together researchers from around the world with access to micro-level data on individual banks to analyze issues pertaining to global banks. This paper summarizes the common met hodology and results of empirical studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk affects bank lending depends on whether the banks are drawing on official-sector liquidity facilities. Third, liquidity management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial heterogeneity in the balance sheet characteristics that affect banks' responses to liquidity risk. Overall, balance sheet characteristics of banks matter for differentiating their lending responses, mainly in the realm of cross-border lending.

Sprache
Englisch

Erschienen in
Series: Staff Report ; No. 675

Klassifikation
Wirtschaft
Financial Crises
International Lending and Debt Problems
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Thema
international banking
liquidity
transmission
central bank liquidity
uncertainty
regulation
crises

Ereignis
Geistige Schöpfung
(wer)
Buch, Claudia M.
Goldberg, Linda S.
Ereignis
Veröffentlichung
(wer)
Federal Reserve Bank of New York
(wo)
New York, NY
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Buch, Claudia M.
  • Goldberg, Linda S.
  • Federal Reserve Bank of New York

Entstanden

  • 2014

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