Learning from Financial Crises

Lim, Jamus Jerome ; Minne, Geoffrey

World Bank, Washington, DC

关键词: ACCESS TO CREDIT;    ACCESS TO FINANCE;    ADVANCED ECONOMIES;    AMOUNT OF LOANS;    ASSET BASE;   

DOI  :  10.1596/1813-9450-6838
RP-ID  :  WPS6838

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper considers the question ofwhether international banks learn from their previous crisisexperiences and reduce their lending to developing countriesin the event of a financial crisis. The analysis combines abank-level dataset of bank activity and ownership withcountry-level data on the stock of historical crisis eventsbetween 1800 and 2005. To circumvent selection andendogeneity concerns, the paper exploits temporal variationsin the relative recency of crises as instruments for crisisexperience. The results indicate that foreign banks withgreater crisis experience reduced their lendingsignificantly more relative to other foreign banks, whichcan be interpreted as evidence in favor of a learningeffect. The findings survive robustness checks that includealternative measures of crisis experience, additionalcontrols, and decompositions into different types of crises.The question of learning is also examined from theperspective of other measures of bank performance.