Abstract
This paper examines how the sensitivity of cross-border syndicated loan supply varies with the internationalization of borrower country banking sectors, banks and loan syndicates. A higher foreign bank presence in borrower countries mitigates the transmission of monetary policy. Prior lending experience of international banks in borrower countries also attenuates monetary transmission. In contrast, to the extent they become more international, the credit supply of banks and loan syndicates becomes more sensitive to lender-country monetary policy
Original language | English |
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Article number | 103542 |
Number of pages | 17 |
Journal | European Economic Review |
Volume | 129 |
Early online date | 21 Jul 2020 |
DOIs | |
Publication status | Published - 1 Oct 2020 |
Structured keywords
- AF Banking
Keywords
- Cross-border lending
- Monetary transmission
- Foreign ownership of banks