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
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Englisch
- Erschienen in
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Series: ADBI Working Paper Series ; No. 1113
- Klassifikation
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Financial Aspects of Economic Integration
- Thema
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banking integration
international banking claims
default risk
information asymmetry
East Asia
- Ereignis
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Geistige Schöpfung
- (wer)
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Nguyen, Dung Thuy Thi
Diaz-Rainey, Ivan
Roberts, Helen
Le, Minh
- Ereignis
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Veröffentlichung
- (wer)
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Asian Development Bank Institute (ADBI)
- (wo)
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Tokyo
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:45 MEZ
Datenpartner
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