蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
From Financial Crisis to Great Recession: The Role of Globalized Banks
蝌蚪网 Review
(pp. 225–30)
Abstract
This paper provides evidence of the role of globalized banks in transmitting financial stresses to the real economy during the global financial crisis. A novel dataset is constructed from quarterly balance sheet reports provided by all UK-resident banks to the Bank of England. I find that the shock to bank funding from non-resident creditors was transmitted domestically through a significant reduction in bank credit supply. Resident subsidiaries and branches of foreign-owned banks reduced lending by a larger amount than domestically-owned banks, while the latter calibrated the reduction in domestic lending more closely to the size of the funding shock.Citation
Aiyar, Shekhar. 2012. "From Financial Crisis to Great Recession: The Role of Globalized Banks." 蝌蚪网 Review 102 (3): 225–30. DOI: 10.1257/aer.102.3.225JEL Classification
- E44 Financial Markets and the Macroeconomy
- G21 Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- F23 Multinational Firms; International Business
- F44 International Business Cycles
- G01 Financial Crises