Book chapter
Spillover Effects of Global MonetaRy Shocks on Foreign Banks: Evidence from an Emerging Economy
Emerging Market Finance: New Challenges and Opportunities, pp 113-127
28 Sep 2020
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Abstract
This chapter examines spillover effects of global monetary shocks on lending by foreign banks in an emerging country, South Korea. Foreign banks play a significant role by providing additional domestic credit and foreign currency liquidity and directing international capital flows via the banking sector. Using macroeconomic and banking data for the period of 2000Q1–2016Q2, the authors present evidence that foreign bank branches in Korea have responded in providing their foreign currency loans with one-quarter (three months) time lag to changes in monetary policies in their home countries (mainly, the United States and the Euro area). This short-run spillover effect of monetary policy shocks from the home countries to foreign banks in Korea seems consistent with the main findings from our bank-level data analysis. This chapter also discusses useful policy implications.
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Details
- Title
- Spillover Effects of Global MonetaRy Shocks on Foreign Banks: Evidence from an Emerging Economy
- Creators
- Bang Nam Jeon - Drexel UniversityHosung Lim - Bank of KoreaJi Wu - Southwestern University of Finance and Economics
- Publication Details
- Emerging Market Finance: New Challenges and Opportunities, pp 113-127
- Publisher
- Emerald Publishing Limited
- Number of pages
- 15
- Resource Type
- Book chapter
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:001054430100007
- Scopus ID
- 2-s2.0-85134154906
- Other Identifier
- 991019335217004721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance