Chapter

When is U.S. Bank Lending to Emerging Markets Volatile?

Edited by Linda S. Goldberg

in Preventing Currency Crises in Emerging Markets

Published by University of Chicago Press

Published in print November 2002 | ISBN: 9780226184944
Published online February 2013 | e-ISBN: 9780226185057 | DOI: http://dx.doi.org/10.7208/chicago/9780226185057.003.0005
When is U.S. Bank Lending to Emerging Markets Volatile?

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This chapter employs new data to examine U.S. banks' lending practices toward emerging nations. It specifically explores the extent to which U.S. banks that lend to the emerging markets respond to changing macroeconomic conditions, both in the United States and in the borrowing countries. Although it is shown that significant differences exist across banks and over time in the size and composition of U.S. bank foreign claims, it did not address the reasons for and timing of changes in these claims. Additionally, the U.S. banks may add to more stable overall credit supplies in emerging markets. There is little evidence of systematic differences in the behavior of U.S. bank claims across periods associated with international financial crises. Furthermore, it is suggested that U.S. banks are not volatile lenders, but it would be helpful to look at this issue in more detail.

Keywords: U.S. banks; bank lending; credit supplies; emerging markets; international financial crises; volatile lenders

Chapter.  10159 words. 

Subjects: International Economics

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