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Spillovers Through Banking Centers: A Panel Data Analysis

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  • International Monetary Fund

Abstract

To test the role of bank lending in transmitting currency crisis we examine a panel of BIS data on bank flows to 30 emerging markets disaggregated by 11 banking centers. We find that bank exposures to a crisis country help predict bank flows in third countries after the Mexican and Asian crisis, but not after the Russian crisis. In the latter, there is evidence of a generalized outflow from emerging markets, rather than outflows linked to prior exposure to Russia.

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  • International Monetary Fund, 2000. "Spillovers Through Banking Centers: A Panel Data Analysis," IMF Working Papers 2000/088, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/088
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