Article ID Journal Published Year Pages File Type
968047 Journal of Multinational Financial Management 2007 11 Pages PDF
Abstract

We analyze the performance outcomes on UK-owned bank lending to borrowers in 17 foreign countries, 1991–2000. Our analysis is unique in its use of bank-specific data on overdue claims in individual countries. Results indicate that credit repayment in a country can be influenced by exports to, and economic activity in, other countries linked by trading relationships. This extends prior research on bank credit performance from a global perspective to the perspective of interdependencies between countries linked by trade. It also extends research on the international transmission of financial shocks from the analysis of credit quantity to the analysis of credit quality.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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