Foreign Bank Behavior During Financial Crises

Adams-Kane, Jonathon ; Caballero, Julian A. ; Lim, Jamus Jerome

World Bank, Washington, DC

关键词: ACCESS TO CREDIT;    ACCOUNTING;    ASSET PORTFOLIOS;    ASSETS;    ASSETS RATIO;   

DOI  :  10.1596/1813-9450-6590
RP-ID  :  WPS6590

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

One of the persistent policy problemsfaced by governments contemplating financial liberalizationsis the question of whether to allow foreign banks entry intothe domestic economy. This question has become ever moreurgent in recent times, due to rapid financialglobalization, coupled with the credit contractionsexperienced as a result of the 2007/08 financial crisis.This paper examines the question of whether opening thefinancial sector to foreign participation is a good idea fordeveloping countries, using a unique bank-level database offoreign ownership. In particular, the authors examinewhether the credit supply of majority foreign-ownedfinancial institutions differ systematically conditional ona crisis event in their home economies. They show thatforeign banks that were exposed to crises in their homecountries exhibit changes in lending patterns that are lowerby between 13 and 42 percent than their non-crisis counterparts.