Capital flows and the international credit channel

Baskaya, Y. S. , di Giovanni, J., Kalemli-Özcan, Ş., Peydro, J.-L. and Ulu, M. F. (2017) Capital flows and the international credit channel. Journal of International Economics, 108(S1), S15-S22. (doi: 10.1016/j.jinteco.2016.12.003)

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Abstract

We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post-2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks' external borrowing for domestic credit growth.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Baskaya, Dr Soner
Authors: Baskaya, Y. S., di Giovanni, J., Kalemli-Özcan, Ş., Peydro, J.-L., and Ulu, M. F.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of International Economics
Publisher:Elsevier
ISSN:0022-1996
ISSN (Online):1873-0353
Published Online:27 January 2017
Copyright Holders:Copyright © 2017 Elsevier B.V.
First Published:First published in Journal of International Economics 108(Supplement 1): S15-S22
Publisher Policy:Reproduced under a Creative Commons License

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