Shock Absorbers or Transmitters? : The Role of Foreign Banks during COVID-19 /

This paper studies whether bank ownership influenced lending behavior during the COVID-19 shock. It finds that, similar to previous episodes of financial distress, foreign banks appear to have played a shock-transmitting role, as there was a sharp slowdown in lending by foreign banks' affiliate...

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Автор: Yao, Weijia
Інші автори: Sen, Anamika, Yepez, Juan
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2022.
Серія:IMF Working Papers; Working Paper ; No. 2022/188
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Онлайн доступ:Full text available on IMF
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245 1 0 |a Shock Absorbers or Transmitters? :   |b The Role of Foreign Banks during COVID-19 /  |c Weijia Yao, Anamika Sen, Juan Yepez. 
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520 3 |a This paper studies whether bank ownership influenced lending behavior during the COVID-19 shock. It finds that, similar to previous episodes of financial distress, foreign banks appear to have played a shock-transmitting role, as there was a sharp slowdown in lending by foreign banks' affiliates relative to domestic banks. However, given the uniqueness of the COVID-19 shock and the impact of lockdowns on economic activity, foreign banks were found to lend at a higher rate than domestic banks once the stringency of mobility restrictions is accounted for, with their lending portfolio concentrated more in the corporate sector. Results also suggest that the difference in lending rates between foreign and domestic banks could be explained by the heterogeneous effects of policy measures in response to the pandemic. In jurisdictions with more stringent mobility restrictions, policy interventions actually encouraged higher lending by foreign banks. These findings suggest that foreign bank presence may have acted as a shock absorber in jurisdictions where economic activity was most affected by the pandemic. 
538 |a Mode of access: Internet 
650 7 |a Event Studies  |2 imf 
650 7 |a Financial Institutions and Services  |2 imf 
650 7 |a Financial Markets and the Macroeconomy  |2 imf 
650 7 |a Information and Market Efficiency  |2 imf 
650 7 |a Studies of Particular Policy Episodes  |2 imf 
700 1 |a Sen, Anamika. 
700 1 |a Yepez, Juan. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2022/188 
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