Deposit Dollarization and the Financial Sector in Emerging Economies

Honohan, Patrick ; Shi, Anqing

World Bank, Washington, DC

关键词: BANK LENDING;    BANKING SYSTEM;    BANKNOTES;    BANKS;    BORROWING;   

DOI  :  10.1596/1813-9450-2748
RP-ID  :  WPS2748

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Analyzing new data, the authors findthat the general trend toward increased use offoreign-currency-denominated bank deposits in emergingmarkets has continued, despite declines in a few countries.Their analysis of the new data suggests that a sizablefraction (about half, on average) of funds switched todollar deposit accounts are effectively exported through thebanking system, thereby reducing the supply of credit.Moreover, increases in deposit dollarization are associatedwith increases in offshore deposits, which probably helps toexplain the authors' finding that dollarization isassociated with an increase in banking spreads. Theauthors' evidence supports, though only weakly, theconjecture that dollarization would tend to raise wholesaleinterest rates systematically through a peso premium. Incontrast, greater dollarization is clearly associated with ahigher pass-through coefficient from exchange rate change toconsumer prices, potentially increasing nominal risk in the economy.