Article ID Journal Published Year Pages File Type
5083685 International Review of Economics & Finance 2014 17 Pages PDF
Abstract
We construct macro-and micro-panel data on international bank lending to six Asian economies-Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand-over the period 2000 to 2010 to analyze a number of objectives. The paper first examines the critical determinants not only to overall international bank lending but also to cross-border bank lending, and find that cross-border lending by international banks tend to pull out from host economies during difficult times in source economies, whereas such retrenchments are not evident on the basis of overall lending. The paper next examines the differences between subsidiaries and branches of international banks in their ability to shield themselves from the financial difficulties of their global parent banks and thus their ability to continue lending in destination markets. The results show that foreign bank subsidiaries are more capable in this regard.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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