Adams-Kane, JonathonJia, YueqingLim, Jamus Jerome2014-08-292014-08-292012-03https://hdl.handle.net/10986/19870During a financial crisis, credit provision by international banks may be stymied by three distinct, but related, channels: changes in lending standards as a result of increased economic uncertainty, changes in funding availability from interbank liquidity markets, and changes in solvency due to effects on bank balance sheets. This paper illuminates the manner by which each of these channels independently operated to affect developed-country bank lending in developing countries during the global financial crisis of 2007/09. It quantifies how changes in banks' uncertainty about the value of their asset holdings, access to interbank liquidity, and internal balance sheet considerations altered their supply of credit in the run-up, during, and in the immediate aftermath of the financial crisis, both in terms of their relative magnitudes, as well as the sensitivity of these magnitudes to the crisis.en-USCC BY 3.0 IGOACCELERATORACCESS TO CREDITACCOUNTINGAFFILIATESAGRICULTUREAICALLOCATION OF CREDITASSET HOLDINGSASSET MARKETSASSET PRICEASSET PRICESAUCTIONAVAILABILITY OF CREDITBALANCE SHEETBALANCE-SHEETBANK ACTIVITYBANK BALANCE SHEETBANK BALANCE SHEETSBANK BEHAVIORBANK BONDSBANK CREDITBANK LIQUIDITYBANK LOANBANK LOANSBANK ORIGINBANKING ASSETSBANKING SECTORBANKRUPTCYBENCHMARKBIDBINDING CONSTRAINTBORROWERBORROWINGBORROWING COSTSBORROWINGSCAPITAL MARKETSCDCDSCENTRAL BANKCENTRAL BANKSCERTIFICATE OF DEPOSITCERTIFICATES OF DEPOSITCHANNELS OF CREDITCHECKSCOMMERCIAL CREDITCOMMERCIAL LOANCOMMERCIAL LOAN MARKETCOMMERCIAL PAPERCOMPARATIVE ECONOMICSCORPORATE INVESTMENTCOST OF CAPITALCOUPONCOUPON PAYMENTSCREDIT ACCESSCREDIT ALLOCATIONCREDIT AVAILABILITYCREDIT CRUNCHCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT DEFAULT SWAPSCREDIT LINESCREDIT MARKETCREDIT MARKETSCREDIT PROVISIONCREDIT RATIONINGCREDIT RISKCREDIT WORTHINESSCREDITWORTHY BORROWERSCRISIS LENDINGCURRENCYCURRENCY CRISESDEBTDEBT CRISISDEBT OBLIGATIONSDEGREE OF LIQUIDITYDEGREE OF RISKDEMAND-SIDE FACTORSDEPENDENCY RATIODEPENDENTDEPOSITSDERIVATIVEDERIVATIVESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIVIDENDDOMESTIC BANKDOMESTIC BANKSDOMESTIC CREDITECONOMIC POLICYECONOMIC RESEARCHELASTICITYEMERGING ECONOMIESEMERGING MARKETEMERGING MARKETSEUROPEAN CENTRAL BANKEXCHANGE RATEEXCHANGE RATESEXPECTED VALUEEXTERNAL FINANCEFEDERAL RESERVEFINANCIAL CONTAGIONFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DATAFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL SHOCKSFINANCIAL STABILITYFINANCIAL STRESSFINANCIAL SUPPORTFIXED RATEFLOW OF CREDITFOREIGN BANKFOREIGN BANK ENTRYFOREIGN BANK PARTICIPATIONFOREIGN BANK PENETRATIONFOREIGN BANKSFOREIGN CLAIMSFOREIGN CURRENCIESFOREIGN EXCHANGEFOREIGN LENDERSFUTURE RESEARCHGDPGLOBAL BANKINGGROSS DOMESTIC PRODUCTHOST COUNTRYHOST ECONOMIESHOST ECONOMYIMPLIED VOLATILITYINCOMEINFLATIONINFLATION RATEINFLATION RATESINFORMATIONAL ASYMMETRIESINSTRUMENTINTERBANK MARKETSINTEREST RATEINTEREST RATE SPREADSINTEREST RATESINTERNAL FINANCINGINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL BANK LENDINGINTERNATIONAL BANKINGINTERNATIONAL BANKSINTERNATIONAL INVESTORSINTERNATIONAL LENDINGINVESTMENT VEHICLESLARGE FIRMSLENDERSLIQUID ASSETSLIQUIDITYLIQUIDITY CONSTRAINTLIQUIDITY CONSTRAINTSLIQUIDITY MANAGEMENTLIQUIDITY PROBLEMSLIQUIDITY RISKLOAN ASSETSLOAN DEMANDLOAN MARKETLOAN OFFICERLOAN OFFICERSLOAN PRINCIPALLOANABLE FUNDSLOCAL BANKSLOCAL CURRENCYMACROECONOMICSMARGINAL VALUEMARKET CONDITIONSMARKET LIQUIDITYMARKET PARTICIPANTSMONETARY POLICYMONETARY SHOCKSMONEY MARKETMORTGAGEMORTGAGE CREDITMORTGAGE-BACKED SECURITIESNATIONAL SAVINGNET WORTHNEW CREDITOPEN ECONOMIESOPPORTUNITY COSTOUTSTANDING LOANSPOLICY ENVIRONMENTPOLICY RESPONSEPORTFOLIOPORTFOLIOSPOSITIVE COEFFICIENTPRICE INDEXESPRICE VOLATILITYPRIMARY MARKETSRATE OF RETURNREAL GROSS DOMESTIC PRODUCTREAL INTERESTREAL INTEREST RATESRECESSIONRETURNSRISK AVERSIONRISK EXPOSURESECURITIES MARKETSHORT-TERM LIQUIDITYSMALL BUSINESSSMALL BUSINESSESSOLVENCYSOLVENCY PROBLEMSSOVEREIGN DEBTSTOCK MARKETSUPPLY OF CREDITSWAPTRANSMISSION OF MONETARY POLICYUNSECURED LOANSUTILITY FUNCTIONVALUATIONVALUATIONSWEALTH10.1596/1813-9450-6011