Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000

Rising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks t...

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Main Authors:	Martinez Peria, Maria Soledad, Powell, Andrew, Hollar, Ivanna Vladkova
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING AFFILIATES BALANCE SHEET BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LOANS BANKS BINDER BONDS BORROWING CAPITAL FLOWS CAR CENTRAL BANKS CREDIT RATINGS CREDIT RISK CURRENCY CRISES DEBT DEPOSITS DOMESTIC CREDIT ECONOMIC CONDITIONS ECONOMICS EMERGING MARKETS EXCESS LIQUIDITY EXPECTED RETURN FINANCIAL CRISES FINANCIAL SECTOR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS INTEREST RATE INTEREST RATES INTERNATIONAL BANKING INTERNATIONAL BANKING STATISTICS INTERNATIONAL CRISES LEGAL SYSTEMS LENDING BEHAVIOR MONETARY AUTHORITIES PORTFOLIO REAL GDP REAL INTEREST RATE RECESSION RISK MITIGATION SECURITIES SUBSIDIARIES SUBSIDIARY VOLATILITY INTERNATIONAL BANKING BANK FINANCING EXTERNAL SHOCKS LENDING POLICY RISK MANAGEMENT INVESTMENT RISKS PORTFOLIO ASSESSMENT DESCRIPTIVE STATISTICS BANK CREDIT REGRESSION ANALYSIS CYCLICAL SWINGS
Online Access:	http://hdl.handle.net/10986/19290

id	okr-10986-19290
recordtype	oai_dc
spelling	okr-10986-192902017-12-14T09:07:09Z Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000 Martinez Peria, Maria Soledad Powell, Andrew Hollar, Ivanna Vladkova ACCOUNTING AFFILIATES BALANCE SHEET BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LOANS BANKS BINDER BONDS BORROWING CAPITAL FLOWS CAR CENTRAL BANKS CREDIT RATINGS CREDIT RISK CURRENCY CRISES DEBT DEPOSITS DOMESTIC CREDIT ECONOMIC CONDITIONS ECONOMICS EMERGING MARKETS EXCESS LIQUIDITY EXPECTED RETURN FINANCIAL CRISES FINANCIAL SECTOR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS INTEREST RATE INTEREST RATES INTERNATIONAL BANKING INTERNATIONAL BANKING STATISTICS INTERNATIONAL CRISES LEGAL SYSTEMS LENDING BEHAVIOR MONETARY AUTHORITIES PORTFOLIO REAL GDP REAL INTEREST RATE RECESSION RISK MITIGATION SECURITIES SUBSIDIARIES SUBSIDIARY VOLATILITY INTERNATIONAL BANKING BANK FINANCING EXTERNAL SHOCKS LENDING POLICY FOREIGN BANKS RISK MANAGEMENT INVESTMENT RISKS PORTFOLIO ASSESSMENT DESCRIPTIVE STATISTICS BANK CREDIT REGRESSION ANALYSIS CYCLICAL SWINGS Rising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks transmit shocks from their home countries and changes in their claims on other countries spill over to individual hosts. However, lending has become less "indiscriminate" and more responsive to host conditions over time. Responsiveness to the latter becomes less "pro-cyclical" as exposure increases. Finally, foreign bank lending reacts more to positive than to negative host shocks and is not significantly curtailed during crises. 2014-08-13T16:53:36Z 2014-08-13T16:53:36Z 2002-09 http://hdl.handle.net/10986/19290 English en_US Policy Research Working Paper;No. 2893 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	World Bank
building	World Bank Open Knowledge Repository
collection	Online Access
language	English en_US
topic	ACCOUNTING AFFILIATES BALANCE SHEET BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LOANS BANKS BINDER BONDS BORROWING CAPITAL FLOWS CAR CENTRAL BANKS CREDIT RATINGS CREDIT RISK CURRENCY CRISES DEBT DEPOSITS DOMESTIC CREDIT ECONOMIC CONDITIONS ECONOMICS EMERGING MARKETS EXCESS LIQUIDITY EXPECTED RETURN FINANCIAL CRISES FINANCIAL SECTOR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS INTEREST RATE INTEREST RATES INTERNATIONAL BANKING INTERNATIONAL BANKING STATISTICS INTERNATIONAL CRISES LEGAL SYSTEMS LENDING BEHAVIOR MONETARY AUTHORITIES PORTFOLIO REAL GDP REAL INTEREST RATE RECESSION RISK MITIGATION SECURITIES SUBSIDIARIES SUBSIDIARY VOLATILITY INTERNATIONAL BANKING BANK FINANCING EXTERNAL SHOCKS LENDING POLICY FOREIGN BANKS RISK MANAGEMENT INVESTMENT RISKS PORTFOLIO ASSESSMENT DESCRIPTIVE STATISTICS BANK CREDIT REGRESSION ANALYSIS CYCLICAL SWINGS
spellingShingle	ACCOUNTING AFFILIATES BALANCE SHEET BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LOANS BANKS BINDER BONDS BORROWING CAPITAL FLOWS CAR CENTRAL BANKS CREDIT RATINGS CREDIT RISK CURRENCY CRISES DEBT DEPOSITS DOMESTIC CREDIT ECONOMIC CONDITIONS ECONOMICS EMERGING MARKETS EXCESS LIQUIDITY EXPECTED RETURN FINANCIAL CRISES FINANCIAL SECTOR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS INTEREST RATE INTEREST RATES INTERNATIONAL BANKING INTERNATIONAL BANKING STATISTICS INTERNATIONAL CRISES LEGAL SYSTEMS LENDING BEHAVIOR MONETARY AUTHORITIES PORTFOLIO REAL GDP REAL INTEREST RATE RECESSION RISK MITIGATION SECURITIES SUBSIDIARIES SUBSIDIARY VOLATILITY INTERNATIONAL BANKING BANK FINANCING EXTERNAL SHOCKS LENDING POLICY FOREIGN BANKS RISK MANAGEMENT INVESTMENT RISKS PORTFOLIO ASSESSMENT DESCRIPTIVE STATISTICS BANK CREDIT REGRESSION ANALYSIS CYCLICAL SWINGS Martinez Peria, Maria Soledad Powell, Andrew Hollar, Ivanna Vladkova Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper;No. 2893
description	Rising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks transmit shocks from their home countries and changes in their claims on other countries spill over to individual hosts. However, lending has become less "indiscriminate" and more responsive to host conditions over time. Responsiveness to the latter becomes less "pro-cyclical" as exposure increases. Finally, foreign bank lending reacts more to positive than to negative host shocks and is not significantly curtailed during crises.
format	Publications & Research :: Policy Research Working Paper
author	Martinez Peria, Maria Soledad Powell, Andrew Hollar, Ivanna Vladkova
author_facet	Martinez Peria, Maria Soledad Powell, Andrew Hollar, Ivanna Vladkova
author_sort	Martinez Peria, Maria Soledad
title	Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
title_short	Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
title_full	Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
title_fullStr	Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
title_full_unstemmed	Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
title_sort	banking on foreigners : the behavior of international bank lending to latin america, 1985–2000
publisher	World Bank, Washington, DC
publishDate	2014
url	http://hdl.handle.net/10986/19290
_version_	1610778213590499328

Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000

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