Running for the exit? International bank lending during a financial crisis

Review of Financial Studies

Volumn 26, Issue 1, 2013, Pages 244-285

  De Haas, Ralph ^a   Van Horen, Neeltje ^b  

^a EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT   (United Kingdom)

^b DE NEDERLANDSCHE BANK   (Netherlands)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84871205482     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhs113     Document Type: Article

References (81)

1. Acharya, V.V., P. Schnabl, and G. Suarez. Forthcoming. Securitization without risk transfer. Journal of Financial Economics.
2. Agarwal, S., and R. Hauswald. 2010. Distance and private information in lending. Review of Financial Studies 23:2757-88.
3. Aghion, P., and J.Tirole. 1997. Formal and real authority in organisations. Journal of Political Economy 105:1-29.
4. Aiyar, S. 2012. From financial crisis to great recession: The role of globalized banks. American Economic Review: Papers & Proceedings 102:225-30.
5. Alessandrini, P.,A. F. Presbitero, andA. Zazzaro. 2009. Banks, distances, and firms'financing constraints. Review of Finance 13:261-307.
6. Almazan, A. 2002. A model of competition in banking: Bank capital versus expertise. Journal of Financial Intermediation 11:87-121.
7. Boot, A. W. A. 2000. Relationship banking: What do we know? Journal of Financial Intermediation 9: 7-25.
8. Boot, A. W. A., and A. V. Thakor. 2000. Can relationship banking survive competition? Journal of Finance 55: 679-713.
9. Brainard, S. 1997.An empirical assessment of the proximity concentration trade-off between multinationals sales and trade. American Economic Review 8:520-44.
10. Buch, C. M. 2005. Distance and international banking. Review of International Economics 13:787-804.
11. Calvo, G. A. 1998. Capital flows and capital-market crises: The simple economics of sudden stops. Journal of Applied Economics 1:35-54.
12. Calvo, G. A., and E. G. Mendoza. 2000. Rational contagion and the globalization of securities markets. Journal of International Economics 51:79-113.
13. Carey, M., and G. Nini. 2007. Is the corporate loan market globally integrated? A pricing puzzle. Journal of Finance 62:2969-3007.
14. Cetorelli, N., and L. S. Goldberg. 2011. Global banks and international shock transmission: Evidence from the crisis. IMF Economic Review 59:41-76.
15. -.Forthcoming. Liquidity management of U.S. global banks: Internal capital markets in the great recession. Journal of International Economics.
16. Chava, S., and A. Purnanandam. 2011. The effect of banking crisis on bank-dependent borrowers. Journal of Financial Economics 99:116-35.
17. Claessens, S., M. P. Dooley, and A. Warner. 1995. Portfolio capital flows: Hot or cold? World Bank Economic Review 9:153-74.
18. Claessens, S., and N. Van Horen. 2011. Trends in foreign banking:Adatabase on foreign bank ownership. DNB Working Paper No. 330 and IMFWorking Paper No. 12/10.
19. Cowan, K., and C. Raddatz. 2011. Sudden stops and financial frictions. Evidence from industry level data. World Bank Policy Research Paper No. 5605.Washington, DC:World Bank.
20. Degryse, H., and S. Ongena. 2005. Distance, lending relationships, and competition. Journal of Finance 60: 231-66.
21. Dell'Ariccia, G. 2001. Asymmetric information and the structure of the banking industry. European Economic Review 45:1957-80.
22. De Haas, R., and N. Van Horen. 2010. The crisis as a wake-up call: Do banks tighten screening and monitoring standards during a financial crisis? Working Paper No. 117. London: European Bank for Reconstruction and Development.
23. -. 2012. International shock transmission after the Lehman Brothers collapse: Evidence from syndicated lending. American Economic Review: Papers & Proceedings 102:231-37.
24. De Haas, R., and I. Van Lelyveld. 2010. Internal capital markets and lending by multinational bank subsidiaries. Journal of Financial Intermediation 19:1-25.
25. Diamond, D. W. 1984. Financial intermediation and delegated monitoring. Review of Economic Studies 51: 393-414.
26. -. 1991. Monitoring and reputation: The choice between bank loans and directly placed debt. Journal of Political Economy 99:689-721.
27. Esty, B. 2004. When do foreign banks finance domestic projects? New evidence on the importance of legal and financial systems.Working Paper, Harvard Business School.
28. Forbes, K., and F. Warnock. Forthcoming. Capital flow waves: Surges, stops, flight, and retrenchment. Journal of International Economics.
29. Gabriele, A., K. Boratav, and A. Parikh. 2000. Instability and volatility of capital flows to developing countries. World Economy 23:1031-56.
30. Giannetti, M., and L. Laeven. 2012a. Flight home, flight abroad, and international credit cycles. American Economic Review: Papers & Proceedings 102:219-24.
31. -.2012b. The flight home effect: Evidence from the syndicated loan market during financial crises. Journal of Financial Economics 104:23-43.
32. Giannetti, M., and Y. Yafeh. 2012. Do cultural differences between contracting parties matter? Evidence from syndicated bank loans. Management Science 58:365-83.
33. Gorton, G., and G. Pennachi. 1995. Banks and loan sales: Marketing non-marketable assets. Journal of Monetary Economics 35:389-411.
34. Greenbaum, S. I., and A. V. Thakor. 1995. Contemporary Financial Intermediation. New York: Dryden Press.
35. Hauswald, R., and R. Marquez. 2006. Competition and strategic information acquisition in credit markets. Review of Financial Studies 19:967-1000.
36. Herrmann, S., and D. Mihaljek. 2010. The determinants of cross-border bank flows to emerging markets: New empirical evidence on the spread of financial crises. Deutsche Bunderbank and BIS, Working Paper.
37. Houston, J., J. Itzkowitz, and A. Naranjo. 2007. Borrowing beyond borders: The geography and pricing of syndicated bank loans. University of Florida and Seton Hall University,Working Paper.
38. Hutchison, M., and I. Noy. 2006. Sudden stops and the mexican wave: Currency crises, capital flow reversals, and output loss in emerging markets. Journal of Development Economics 79:225-48.
39. Imai, M., and S. Takarabe. 2011. Bank integration and transmission of financial shocks: Evidence from Japan. American Economic Journal: Macroeconomics 3:155-83.
40. International Monetary Fund. 2010. The Fund's Role Regarding Cross-Border Capital Flows. Report prepared by the Strategy, Policy, and Review Department and the Legal Department.
41. Ivashina, V., and D. S. Scharfstein. 2010. Bank lending during the financial crisis of 2008. Journal of Financial Economics 97:319-38.
42. Iyer, R., S. Lopes, J.-L. Peydró, and A. Schoar. 2010. The inter-bank liquidity crunch and the firm credit crunch: Evidence from the 2007-2009 crisis. MIT and European Central Bank,Working Paper.
43. Jaffee, D. M., and F. Modigliani. 1971. A theory and test of credit rationing. American Economic Review 59: 850-72.
44. Jappelli,T.,M. Pagano, and M. Bianco. 2005. Courts and banks: Effects of judicial enforcement on credit markets. Journal of Money, Credit, and Banking 37:223-44.
45. Kaufmann, D.,A. Kraay, and M. Mastruzzi. 2007. Governance matters VI:Aggregate and individual governance indicators, 1996-2006. Policy ResearchWorking Paper Series No. 4280.Washington, DC:World Bank.
46. Khwaja, A. I., and A. R. Mian. 2008. Tracing the impact of bank liquidity shocks. American Economic Review 98:1413-42.
47. Kose, M. A., E. S. Prasad, and M. E. Terrones. 2003. How does globalization affect the synchronization of business cycles? American Economic Review 93:57-62.
48. La Porta, R., F. López-de-Silanes, A. Shleifer, and R. W. Vishny. 1998. Law and finance. Journal of Political Economy 106:1113-55.
49. Lederer, P., and A. P. Hurter. 1986. Competition of firms: Discriminatory pricing and location. Econometrica 54:623-40.
50. Levchenko, A., and P. Mauro. 2007. Do some forms of financial flows help protect from sudden stops? World Bank Economic Review 21:389-411.
51. Liberti, J. M., and A. R. Mian. 2009. Estimating the effect of hierarchies on information use. Review of Financial Studies 22:4057-90.
52. McGuire, P., and N. Tarashev. 2008. Bank health and lending to emerging markets. BIS Quarterly Review December:67-80.
53. Melitz, M. J. 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71:1695-1725.
54. Mian, A. R. 2006. Distance constraints: The limits of foreign lending in poor economies. Journal of Finance 61:1465-1505.
55. Milesi-Ferretti, G. M., and C. Tille. 2011. The great retrenchment: International capital flows during the global financial crisis. Economic Policy 66:285-342.
56. Morgan, D. 2002. Ratings banks: Risk and uncertainty in an opaque industry. American Economic Review 92:874-88.
57. Nini, G. 2004. The role of local banks in promoting external finance: A study of syndicated lending to emerging market borrowers. Federal Reserve Board,Working Paper.
58. Pagano, M., and T. Jappelli. 1993. Information sharing in credit markets. Journal of Finance 43:1693-1781.
59. Paravisini, D., V. Rappoport, P. Schnabl, and D. Wolfenzon. 2012. Dissecting the effect of credit supply on trade: Evidence from matched credit-export data. NBERWorking Paper No. 16975.
60. Peek, J., and E. Rosengren. 1997. The international transmission of financial shocks: The case of Japan. American Economic Review 87:495-505.
61. -. 2000. Collateral damage: Effects of the Japanese bank crisis on the United States. American Economic Review 90:30-45.
62. Petersen, M. A., and R. G. Rajan. 2002. Does distance still matter? The information revolution in small business lending. Journal of Finance 57:2533-70.
63. Pongsaparn, R., and O. Unteroberdoerster. 2011. Financial integration and rebalancing in Asia. IMF Working Paper No. 243.Washington, DC: International Monetary Fund.
64. Popov, A., and G. Udell. 2012. Cross-border banking, credit access, and the financial crisis. Journal of International Economics 87:147-61.
65. Portes, R., H. Rey, and Y. Oh. 2001. Information and capital flows: The determinants of transactions in financial assets. European Economic Review 45:783-96.
66. Qian, J., and P. E. Strahan. 2007. How laws and institutions shape financial contracts: The case of bank loans. Journal of Finance 62:2803-34.
67. Rajan, R.G. 1992. Insiders and outsiders: The choice between informed and arm's-length debt. Journal of Finance 47:1367-1400.
68. Rajan, R. G., H. Servaes, and L. Zingales. 2000. The cost of diversity: The diversification discount and inefficient investments. Journal of Finance 55:35-80.
69. Reinhart, C. M., and K. S. Rogoff. 2009. This Time Is Different. Eight Centuries of Financial Folly. Princeton, NJ: Princeton University Press.
70. Rose, A. K., and T.Wieladek. 2011. Financial protectionism: The first tests. External MPVUnit Discussion Paper No. 32. London: Bank of England.
71. Ruckes, M. 2004. Bank competition and credit standards. Review of Financial Studies 17:1073-1102.
72. Sarno, L., and M. P.Taylor. 1999. Hotmoney, accounting labels, and the permanence of capital flows to developing countries: An empirical investigation. Journal of Development Economics 59:337-64.
73. Scharfstein, D. S., and J. C. Stein. 2000. The dark side of internal capital markets: Divisional rent-seeking and inefficient investment. Journal of Finance 55:2537-64.
74. Schnabl, P. 2012. Financial globalization and the transmission of bank liquidity shocks: Evidence from an emerging market. Journal of Finance 67:897-932.
75. Sharpe, S. 1990. Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships. Journal of Finance 45:1069-87.
76. Stein, J. C. 2002. Information production and capital allocation: Decentralized versus hierarchical firms. Journal of Finance 57:1891-1921.
77. Sufi, A. 2007. Information asymmetry and financing arrangements: Evidence from syndicated loans. Journal of Finance 62:629-68.
78. Sussman, O., and J. Zeira. 1995. Banking and development. CEPR Discussion Paper No. 1127, London.
79. Tinbergen, J. 1962. Shaping the World Economy. New York: The Twentieth-Century Fund.
80. Van Rijckeghem, C., and B. Weder. 2001. Sources of contagion: Finance or trade? Journal of International Economics 54:293-308.
81. -. 2003. Spillovers through banking centres:Apanel data analysis of bank flows. Journal of International Money and Finance 22:483-509.