Martinez Peria, Maria SoledadPowell, AndrewHollar, Ivanna Vladkova2014-08-132014-08-132002-09https://hdl.handle.net/10986/19290Rising international bank financing to developing countries has fueled a debate on the behavior of these claims. The authors analyze claims from seven home (lender) countries on ten host (borrower) countries in Latin America. They find that banks transmit shocks from their home countries and changes in their claims on other countries spill over to individual hosts. However, lending has become less "indiscriminate" and more responsive to host conditions over time. Responsiveness to the latter becomes less "pro-cyclical" as exposure increases. Finally, foreign bank lending reacts more to positive than to negative host shocks and is not significantly curtailed during crises.en-USCC BY 3.0 IGOACCOUNTINGAFFILIATESBALANCE SHEETBANK EXPOSUREBANK FOR INTERNATIONAL SETTLEMENTSBANK LENDINGBANK LOANSBANKSBINDERBONDSBORROWINGCAPITAL FLOWSCARCENTRAL BANKSCREDIT RATINGSCREDIT RISKCURRENCY CRISESDEBTDEPOSITSDOMESTIC CREDITECONOMIC CONDITIONSECONOMICSEMERGING MARKETSEXCESS LIQUIDITYEXPECTED RETURNFINANCIAL CRISESFINANCIAL SECTORFOREIGN BANKSFOREIGN CURRENCY DEPOSITSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINGINTERNATIONAL BANKING STATISTICSINTERNATIONAL CRISESLEGAL SYSTEMSLENDING BEHAVIORMONETARY AUTHORITIESPORTFOLIOREAL GDPREAL INTEREST RATERECESSIONRISK MITIGATIONSECURITIESSUBSIDIARIESSUBSIDIARYVOLATILITY INTERNATIONAL BANKINGBANK FINANCINGEXTERNAL SHOCKSLENDING POLICYFOREIGN BANKSRISK MANAGEMENTINVESTMENT RISKSPORTFOLIO ASSESSMENTDESCRIPTIVE STATISTICSBANK CREDITREGRESSION ANALYSISCYCLICAL SWINGS10.1596/1813-9450-2893