TY  - JOUR
AU  - Goldberg, Linda S
TI  - When Is U.S. Bank Lending to Emerging Markets Volatile?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8209
PY  - 2001
Y2  - April 2001
DO  - 10.3386/w8209
UR  - http://www.nber.org/papers/w8209
L1  - http://www.nber.org/papers/w8209.pdf
N1  - Author contact info:
Linda S. Goldberg
Federal Reserve Bank-New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-2836
Fax: 212/720-6831
E-Mail: linda.goldberg@ny.frb.org
M1  - published as Linda S. Goldberg. "When Is U.S. Bank Lending to Emerging Markets Volatile?," in Sebastian Edwards and Jeffrey A. Frankel, editors, "Preventing Currency Crises in Emerging Markets" University of Chicago Press (2002)

AB  - Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper: 1) characterizes the size and portfolio diversification patterns of the U.S. banks engaging in foreign lending; and 2) econometrically explores the determinants of fluctuations in U.S. bank claims on a broad set of countries. U.S. bank claims on Latin American and Asian emerging markets, and on industrialized countries, are sensitive to U.S. macroeconomic conditions. When the United States grows rapidly, there is substitution between claims on industrialized countries and claims on the United States. The pattern of response of claims on emerging markets to U.S. conditions differs across banks of different sizes and across emerging market regions. Moreover, unlike U.S. bank claims on industrialized countries, we find that claims on emerging markets are not highly sensitive to local country GDP and interest rates.
ER  -