Asia and Europe are Different?

• 영문명: Asia and Europe are Different? : Credit Reponse to Global Bank Deleveraging
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Shekhar Aiyar Sonali Jain-Chandra
• 간행물 정보: 『Journal of Economic Integration』제28권 제2호, 269~284쪽, 전체 16쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2013.06.30

영문 초록

During the global financial crisis, European banks sharply contracted foreign claims on recipient economies. This paper examines the impact of that deleveraging on credit supply in recipient economies, with a particular focus on Asia. Identification is achieved by exploiting heterogeneity in the ex-ante patterns of funding reliance on different European banking systems, and in variation in the ratio of local claims in local currency to total foreign claims in recipient economies. These sources of variation are used to create instruments for the deleveraging shock. We find that the contraction of foreign claims in European bank was associated with a substantial reduction in domestic credit supply in a broad sample of countries. However, the credit supply response in Asia was only about half the size of the response in non-Asian countries, possibly due to stronger policy response and healthier local bank balance sheets in the Asian countries at the outset of the crisis.

목차

Ⅰ. Introduction

Ⅱ. The Role of European Banks in Asia

Ⅲ. Econometric Methodology

Ⅳ. Results

Ⅴ. Why did Asia React Differently?

키워드

Global banks Liquidity shock Cross-border lending Instrumental variables