Multinational banks and the global financial crisis: Weathering the perfect storm?
de Haas,R. van Lelyveld,I.
de Haas,R.
van Lelyveld,I.
Abstract
We use data on the 48 largest multinational banking groups to compare the lending of their 199 foreign subsidiaries during the Great Recession with lending by a benchmark of 202 domestic banks. Contrary to earlier and more contained crises, parent banks were not a significant source of strength to their subsidiaries during 2008–09. When controlling for other bank characteristics, multinational bank subsidiaries had to slow down credit growth almost three times as fast as domestic banks. This was in particular the case for subsidiaries of banking groups that relied more on wholesale funding.
Description
Date
2014-02
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
multinational banks, financial stability, crisis transmission, bank funding, F15 - Economic Integration, F23 - Multinational Firms ; International Business, F36 - Financial Aspects of Economic Integration, G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages, SDG 10 - Reduced Inequalities
Citation
de Haas, R & van Lelyveld, I 2014, 'Multinational banks and the global financial crisis : Weathering the perfect storm?', Journal of Money Credit and Banking, vol. 46, no. s1, pp. 333-364. https://doi.org/10.1111/jmcb.12094