05739oam 22012494 450 991077933150332120230802005700.01-4755-6499-61-4755-6234-91-283-86687-01-4755-8294-3(CKB)2550000000709422(EBL)1607039(SSID)ssj0001101067(PQKBManifestationID)11630449(PQKBTitleCode)TC0001101067(PQKBWorkID)11064081(PQKB)10633323(MiAaPQ)EBC1607039(Au-PeEL)EBL1607039(CaPaEBR)ebr10635351(CaONFJC)MIL417937(OCoLC)870245074(IMF)WPIEE2012258(IMF)WPIEA2012258(EXLCZ)99255000000070942220020129d2012 uf 0engur|n|---|||||txtccrThe Domestic Credit Supply Response to International Bank Deleveraging : Is Asia Different? /Shekhar Aiyar, Sonali Jain-ChandraWashington, D.C. :International Monetary Fund,2012.1 online resource (16 p.)IMF Working PapersIMF working paper ;WP/12/258Description based upon print version of record.1-4755-8091-6 Includes bibliographical references.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; ReferencesDuring 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.IMF Working Papers; Working Paper ;No. 2012/258Banks and banking, InternationalAsiaBanks and bankingAsiaBanks and BankingimfMoney and Monetary PolicyimfFinancial CrisesimfMonetary SystemsimfStandardsimfRegimesimfGovernment and the Monetary SystemimfPayment SystemsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMonetary economicsimfBankingimfForeign currency exposureimfForeign banksimfDomestic creditimfBank creditimfMoneyimfFinancial institutionsimfCreditimfForeign exchange marketimfBanks and bankingimfBanks and banking, ForeignimfUnited StatesimfBanks and banking, InternationalBanks and bankingBanks and BankingMoney and Monetary PolicyFinancial CrisesMonetary SystemsStandardsRegimesGovernment and the Monetary SystemPayment SystemsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMonetary economicsBankingForeign currency exposureForeign banksDomestic creditBank creditMoneyFinancial institutionsCreditForeign exchange marketBanks and bankingBanks and banking, ForeignAiyar Shekhar1095044Jain-Chandra Sonali1552511International Monetary Fund.DcWaIMFBOOK9910779331503321The Domestic Credit Supply Response to International Bank Deleveraging3824725UNINA