Banking on Foreigners : The Behavior of International Bank Lending to Latin America, 1985–2000
Rising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks t...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/09/2028949/banking-foreigners-behavior-international-bank-lending-latin-america-1985-2000 http://hdl.handle.net/10986/19290 |
| Summary: | Rising international bank financing to
developing countries has fueled a debate on the behavior of
these claims. The authors analyze claims from seven home
(lender) countries on ten host (borrower) countries in Latin
America. They find that banks transmit shocks from their
home countries and changes in their claims on other
countries spill over to individual hosts. However, lending
has become less "indiscriminate" and more
responsive to host conditions over time. Responsiveness to
the latter becomes less "pro-cyclical" as exposure
increases. Finally, foreign bank lending reacts more to
positive than to negative host shocks and is not
significantly curtailed during crises. |
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