Financial Spillovers to Chile

Author/Editor:

Jiri Podpiera

Publication Date:

October 24, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper quantifies financial spillovers from global risk factors to banks’ funding costs in Chile. It decomposes Chilean banks’ bond and interbank spreads into domestic and external factors. The results suggest moderate spillovers. On average, global spillovers pushed up bank bond and interbank spreads in Chile by about 50 basis points in 2008–12. While in 2008–09, most spillovers originated in the U.S., in mid-2010 onwards, European distress played a prominent role.

Series:

Working Paper No. 12/254

Subject:

English

Publication Date:

October 24, 2012

ISBN/ISSN:

9781475552195/1018-5941

Stock No:

WPIEA2012254

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

17

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