The Domestic Credit Supply Response to International Bank Deleveraging : : Is Asia Different? / / Shekhar Aiyar, Sonali Jain-Chandra

• Record Nr.: UNINA9910779331503321
• Autore: Aiyar Shekhar
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2012
• ISBN: 1-4755-6499-6; 1-4755-6234-9; 1-283-86687-0; 1-4755-8294-3
• Descrizione fisica: 1 online resource (16 p.)
• Collana: IMF Working Papers; IMF working paper ; ; WP/12/258
• Altri autori (Persone): Jain-ChandraSonali
• Soggetti: Banks and banking, International - Asia; Banks and banking - Asia; Banks and Banking; Money and Monetary Policy; Financial Crises; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Monetary Policy, Central Banking, and the Supply of Money and Credit: General; Monetary economics; Banking; Foreign currency exposure; Foreign banks; Domestic credit; Bank credit; Money; Financial institutions; Credit; Foreign exchange market; Banks and banking; Banks and banking, Foreign; United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover; Contents; I. Introduction; Figures; 1. Consolidated Foreign Claims on Asian Economies; II. The Role of European Banks in Asia; 2. Consolidated Foreign Claims of European Banks on Asia; 3. BIS Reporting Banks' Foreign Claims on Selected Asian Economies by Sector; III. Econometric Methodology; 4. Consolidated International Claims of European Banks; IV. Results; Tables; 1. Impact of Change in Foreign Claims on Change in Domestic Credit Supply; V. Why did Asia React Differently?; 2. Impact of Change in Foreign Claims on Change in Domestic Credit Supply (Using exchange rate adjusted foreign claims data)5. Difference in Policy Responses: Asia Versus Non-Asia; 3. Summary of Policy Actions taken in Asia during the Global Financial Crisis; 6. Debt-to-Equity Ratio in Financial Firms at End-2007; References
• Sommario/riassunto: During the global financial crisis, European banks contracted foreign claims on recipient economies sharply. 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 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 in European bank foreign claims 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 a more robust policy response and healthier local bank balance sheets at the outset of the crisis.