Cross-Border Capital Flows and Bank Risk-Taking
| Autor: | Valeriya Dinger, Daniel Marcel te Kaat |
|---|---|
| Přispěvatelé: | Research programme EEF |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
MONETARY-POLICY TRANSMISSION IMPACT media_common.quotation_subject INTEREST-RATES education GLOBAL FINANCIAL CRISIS Financial system COMPETITION Competition (economics) Bank risk 0502 economics and business Agency (sociology) 050207 economics Capital flows health care economics and organizations media_common LIABILITIES 050208 finance 05 social sciences Monetary policy FOREIGN BANKS Interest rate MULTINATIONAL BANKS Loan Capital (economics) FUNDS Business Finance |
| Zdroj: | Journal of Banking & Finance, 117:105842. ELSEVIER SCIENCE BV |
| ISSN: | 1872-6372 0378-4266 |
| Popis: | This paper explores the impact of cross-border capital flows on bank lending volumes and risk. Employing bank-level data from the euro area, we show that capital inflows are associated with higher bank credit supply and lower average loan quality. By showing that the lending patterns of smaller domestic banks are also affected, we present evidence that the impact of international capital flows is not limited to large banks with international exposure. Nevertheless, the observed effects are stronger for large banks as well as for banks with low levels of capitalisation, suggesting that agency issues reinforce the link between capital flows and bank lending. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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