Banking globalization, local lending, and labor market effects: Micro-level evidence from Brazil

Autor:	Felix Noth, Matias Ossandon Busch
Rok vydání:	2021
Předmět:	Micro level Shock (economics) Globalization Market economy Financial crisis Economics Monetary economics Aggregate level General Economics Econometrics and Finance Capital market health care economics and organizations Finance
Zdroj:	Journal of Financial Stability. 56:100933
ISSN:	1572-3089
DOI:	10.1016/j.jfs.2021.100933
Popis:	Recent financial crises have prompted the interest in understanding how banking globalization interacts with domestic institutions in shaping foreign shocks’ transmission. This paper uses regional banking data from Brazil to show that a foreign funding shock to banks negatively affects lending by their regional branches. This effect increases in the presence of frictions in internal capital markets, which affect branches’ capacity to access funding from other regions via intra-bank linkages. These results also matter on an aggregate level, as municipality-level credit and job flows drop in exposed regions. Policies aiming to reduce the fragmented structure of regional banking markets could moderate the propagation of foreign shocks.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::abb16a418f58c258ec9493d89e9ba1f0 https://doi.org/10.1016/j.jfs.2021.100933 Zobrazit plný text záznamu Full Text from ScienceDirect