Arbeitspapier
On the Roles of Different Foreign Currencies in European Bank Lending
We draw on a new data set on the use of Swiss francs and other currencies by European banks to assess the patterns of foreign currency bank lending. We show that the patterns differ sharply across foreign currencies. The Swiss franc is used predominantly for lending to residents, especially households. It is sensitive to the interest rate differential, exchange rate developments, funding availability, and to some extent international trade. Lending in other currencies is more used in lending to resident nonfinancial firms, and mostly in cross-border lending, where it is sensitive to funding costs and trade. Policy measures aimed at foreign currency lending have a clear impact on lending to residents. Our analysis shows that not all foreign currencies are alike, and that any policy aimed at the use of foreign currencies needs to take this heterogeneity into account.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 5535
- Classification
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Wirtschaft
Current Account Adjustment; Short-term Capital Movements
International Lending and Debt Problems
Financial Aspects of Economic Integration
- Subject
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Swiss franc lending
foreign currency lending
cross-border transmission of shocks
European bank balance sheets
- Event
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Geistige Schöpfung
- (who)
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Krogstrup, Signe
Tille, Cedric
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Krogstrup, Signe
- Tille, Cedric
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2015
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