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Bank health and lending to emerging markets

Author

Listed:
  • Patrick McGuire
  • Nikola Tarashev

Abstract

Over the past decade, many emerging markets have increased their dependence on credit from foreign banks. However, the ongoing financial crisis may prompt banks to reassess their exposures to these economies. Panel regression analysis of data since the early 1990s indicates that a deterioration in bank health is associated with a decline in the growth of credit to emerging markets.

Suggested Citation

  • Patrick McGuire & Nikola Tarashev, 2008. "Bank health and lending to emerging markets," BIS Quarterly Review, Bank for International Settlements, December.
    • Handle: RePEc:bis:bisqtr:0812g
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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