Spillovers Through Banking Centers: A Panel Data Analysis
39 Pages Posted: 31 Jan 2006
Date Written: May 2000
To test the role of bank lending in transmitting currency crisis we examine a panel of BIS data on bank flows to 30 emerging markets disaggregated by 11 banking centers. We find that bank exposures to a crisis country help predict bank flows in third countries after the Mexican and Asian crisis, but not after the Russian crisis. In the latter, there is evidence of a generalized outflow from emerging markets, rather than outflows linked to prior exposure to Russia.
Keywords: Contagion, Currency Crisis, Financial Spillovers
JEL Classification: F30, F32, F34
Suggested Citation: Suggested Citation