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International Lending Channel, Bank Heterogeneity and Capital Inflows (Mis)Allocation

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  • Lucas A. Mariani
  • Silvia Marchesi

Abstract

Working Paper 887 This paper explores the role of banks’ heterogeneity in international lending and its impacts on capital inflows allocation across firms by exploiting the inclusion of South Africa into the Citi Group’s World Government Bond Index (WGBI). Using bank-level data, we provide evidence that banks holding sovereign bonds before the inclusion increase credit […]

Suggested Citation

  • Lucas A. Mariani & Silvia Marchesi, 2023. "International Lending Channel, Bank Heterogeneity and Capital Inflows (Mis)Allocation," Working Papers 887, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:887
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    More about this item

    Keywords

    capital; capital market; central bank; Financial Accounting; Financial Markets;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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