دانلود رایگان مقاله انگلیسی انتقال شوک های نقدینگی: شواهد مربوط به ارتباطات مالکیت بانک های بین مرزی - الزویر 2018

abstract

This study examines whether a liquidity shock to a banking system could be transmitted to other economies through a network of bank ownership. Firstly we construct cross-border ownership networks for banks located in European countries. We then exploit the 2010 European debt crisis as a natural experiment. The analysis shows that subsidiary banks located outside of Greece, Ireland, Italy, Portugal and Spain (GIIPS) but with ownership linkages to these countries have a lower loan growth rate during the crisis period. This suggests that the liquidity shock experienced by GIIPS countries was indeed transmitted to those banks through ownership linkages. Larger subsidiary banks and those subsidiaries that were more profitable are found to be more resilient to the shock. We also find that the parent bank’s characteristics affect the transmission of the shock, supporting the notion of an internal capital market operating within these banks.

8. Conclusion

Over the past two decades, the world’s economies are increasingly interconnected through bank ownership ties. There has been a substantial increase in foreign bank ownership in the domestic banking system. As such, it is important to understand the possible consequences of the interconnectedness of the global banking system. It has been argued that the presence of foreign banks can stimulate competition and innovation in domestic banking system thus improving the overall efficiency of the financial sector. This should have a long-term positive effect on the development of the domestic economy. However, a large proportion of foreign owned banks could expose the domestic baking system to international liquidity crises. This paper examined whether a liquidity crisis can be transmitted internationally through a bank’s cross-border ownership linkages.

The 2010 European debt crisis provided a unique opportunity to identify this transmission. The ownership network for international banks operating in the European countries was constructed, based on the ownership data provided by Bankscope. Then the exposure to the liquidity crisis in GIIPS countries was calculated for each subsidiary bank located in nonGIIPS countries, measured by the proportion of their banking groups’ assets in GIIPS countries. The Difference-inDifference method was implemented to examine the transmission effect. The results from the DID regressions show that the treatment has a negative and significant effect on a bank’s lending growth rate during the crisis period, and the magnitude of the effect is large. Overall the results of this study suggest that subsidiary banks operating in non-GIIPS countries who were exposed to the liquidity crisis in GIIPS countries due to the ownership linkages tend to have a lower lending growth rate during the crisis period, compared with those who were not exposed. This, in turn, suggests that the liquidity crisis in GIIPS countries banking system was transmitted to other European countries through cross-border bank ownership linkages.