Arbeitspapier

Loans from my neighbors: East Asian commercial banks, banking integration, and bank default risk

This study investigated the impact of banking integration on recipient country bank default risk and, in particular, whether the type of banking integration moderates that relationship. Using the system generalized method of moments (GMM), the study found that banking integration lowers bank default risk in recipient countries. The foreign claims that Asian lenders extend and the foreign claims that banks extend via local affiliates primarily drive the impact. These results show that the close proximity of lenders and borrowers or "local" knowledge via an affiliate's presence alleviates information asymmetry, allowing for effective monitoring and disciplining of the loan relationship. The result supports the fostering of banking integration, promoting deeper intra-regional connectedness throughout East Asia. Where foreign claims come from outside East Asia, policy makers should encourage their presence through local affiliates, as this has an equivalent impact.

Sprache
Englisch

Erschienen in
Series: ADBI Working Paper Series ; No. 1113

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Financial Aspects of Economic Integration
Thema
banking integration
international banking claims
default risk
information asymmetry
East Asia

Ereignis
Geistige Schöpfung
(wer)
Nguyen, Dung Thuy Thi
Diaz-Rainey, Ivan
Roberts, Helen
Le, Minh
Ereignis
Veröffentlichung
(wer)
Asian Development Bank Institute (ADBI)
(wo)
Tokyo
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:45 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

  • Nguyen, Dung Thuy Thi
  • Diaz-Rainey, Ivan
  • Roberts, Helen
  • Le, Minh
  • Asian Development Bank Institute (ADBI)

Entstanden

  • 2020

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