SSRN Electronic Journal · 2010 · 67 citations · 1 references
Open access
BusinessBusiness EconomicsEconomicsBankingInternational FinanceMacroeconomicsCredit RiskCross-border LendingFinancial CrisesInternational BankingBank Lending FlowsCredit Supply ConstraintsCredit Supply ShocksCross-border Bank LendingCross-border Interbank LendingPanel Data RegressionPanel Regression Models
Cross-border bank lending dropped sharply during the financial crisis. This feature uses a panel regression framework to analyse the key drivers of cross-border bank lending to 21 emerging market economies between 1995 and 2009. The analysis suggests that both demand and supply factors contributed to the fall, but the impact of supply was stronger. The two factors seem to have had more balanced effects before the crisis.
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