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Financial Spillovers to Chile

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  • Jiri Podpiera

Abstract

This paper quantifies financial spillovers from global risk factors to banks’ funding costs in Chile. It decomposes Chilean banks’ bond and interbank spreads into domestic and external factors. The results suggest moderate spillovers. On average, global spillovers pushed up bank bond and interbank spreads in Chile by about 50 basis points in 2008–12. While in 2008–09, most spillovers originated in the U.S., in mid-2010 onwards, European distress played a prominent role.

Suggested Citation

  • Jiri Podpiera, 2012. "Financial Spillovers to Chile," IMF Working Papers 2012/254, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/254
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    References listed on IDEAS

    as
    1. Nathaniel Frank & Heiko Hesse, 2009. "Financial Spillovers to Emerging Markets during the Global Financial Crisis," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 59(6), pages 507-521, December.
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    3. repec:bla:jfinan:v:53:y:1998:i:6:p:2225-2241 is not listed on IDEAS
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