Bank loan supply during crises: The importance of geographic diversication

Arbeitspapier

We classify a large sample of banks according to the geographic diversification of their international syndicated loan portfolio. Our results show that diversified banks maintain higher loan supply during banking crises in borrower countries. The positive loan supply effects lead to higher investment and employment growth for firms. Diversified banks are stabilizing due to their ability to raise additional funding during times of distress, which also shields connected markets from spillovers. Further distinguishing banks by nationality reveals a pecking order: diversified domestic banks are the most stable source of funding, while foreign banks with little diversification are the most fickle. Our findings suggest that the decline in financial integration since the recent crisis increases countries' vulnerability to local shocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 288

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Finance: General ; Financial Crises ; International Financial Markets ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Thema: Diversification ; Global Banking ; Financial Stability ; Syndicated Loan Market ; Banking Crisis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dörr, Sebastian ; Schaz, Philipp
• Ereignis: Veröffentlichung
• (wer): University of Zurich, Department of Economics
• (wo): Zurich
• (wann): 2019

Weitere Informationen

• DOI: doi:10.5167/uzh-151736
• Handle: http://hdl.handle.net/10419/195168
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ