Uncertainty and International Banking

Konferenzbeitrag

We develop a new measure of uncertainty derived from bank-level data. We apply the measure of firm-level uncertainty developed by Bloom and others (2012) to banking. Uncertainty is measured as the cross-sectional dispersion of shocks to banking-sector specific variables. We then analyze how uncertainty in banking affects lending by domestic and foreign-owned banks. We find that, first, higher uncertainty in banking has negative effects on bank lending. Second, the effect is heterogeneous across banks: Lending by banks which are better capitalized and have higher liquidity buffers tends to be affected less. Third, foreign-owned banks do not react differently to uncertainty in the host country compared to domestically-owned banks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Credit and Liquidity Risks in Financially Integrated Markets: Policy Implications and Real Effects ; No. A02-V3

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; International Lending and Debt Problems ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tonzer, Lena ; Buch, Claudia M. ; Buchholz, Manuel
• Event: Veröffentlichung
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/113072
• Last update: 10.03.2025, 11:46 AM CET