Connected to Whom? International Interbank Borrowing During the Global Crisis

Author/Editor: Kalin Tintchev
Publication Date: January 14, 2013
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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: The unprecedented collapse of international interbank borrowing was a prominent feature of the global financial crisis that started in August 2007. This paper focuses on the drivers of the retrenchment from 32 advanced and emerging banking systems. Using novel risk-weighted indexes the paper examines whether the banking systems’ access to credit was related to their domestic financial soundness and exposure to distressed international counterparties. The empirical findings suggest that both domestic and international risk factors contributed to the decline in international interbank borrowing during the crisis.
Series: Working Paper No. 13/14
Subject(s): Banking systems | Global Financial Crisis 2008-2009 | International banks | Borrowing | Developed countries | Emerging markets | Cross country analysis | Economic models

Publication Date: January 14, 2013
ISBN/ISSN: 9781475542028/1018-5941 Format: Paper
Stock No: WPIEA2013014 Pages: 33
US$18.00 (Academic Rate:
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