Front Matter Page
Research Department
Contents
1. Introduction
2. The interbank long-term lending market
3. Shcok transmission mechanism and hypothesis construction
3.1 Shock transmission mechanism
3.2 Hypotheses
4. Data
4.1 Constructing foreign interbank exposures
4.2 Other data
4.3 Correlation with total foreign exposures
5. Results
5.1 Crisis exposures and bank profitability
5.1.1 Main findings
5.1.2 Tackling endogeneity
5.1.3 Potential mechanisms
5.2 Crisis exposures and bank lending
5.3 Robustness tests
6. Conclusions
References
Data Appendix
List of figures
1. Size of the interbank long-term lending market, 1997-2012
2. Connectivity and number of banks in the global banking network, 1997-2012
3. Bank profitability and systemic banking crises, 1997-2012
List of tables
1. Long-term interbank exposures on bank balance sheets
2. Descriptive statistics
3. Correlation of interbank exposures with total foreign exposures
4. Effect of crisis exposures on bank performance - Baseline (ROA)
5. Effect of crisis exposures on bank performance - Baseline (ROE)
6. Effect of crisis exposures on bank performance - Addressing endogeneity
7. Effect of crisis exposures on bank performance - NIM channel
8. Effect of crisis exposures on banks’ supply of corporate loans