IMF Working Papers

Connected to Whom? International Interbank Borrowing During the Global Crisis

By Kalin I Tintchev

January 14, 2013

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Kalin I Tintchev. Connected to Whom? International Interbank Borrowing During the Global Crisis, (USA: International Monetary Fund, 2013) accessed December 6, 2024
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.

Subject: Commercial banks, Credit, Credit risk, Emerging and frontier financial markets, Financial institutions, Financial markets, Financial regulation and supervision, Liquidity risk, Money

Keywords: Banking system borrowing, Borrower effect, Commercial banks, Counterparty risk, Credit, Credit risk, Credit risk index, Emerging and frontier financial markets, Europe, Financial interconnectedness, Global, Interbank market, Liquidity risk, Liquidity risk index, Moody's KMV banking system default probability, WP

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2013/014

  • Stock No:

    WPIEA2013014

  • ISBN:

    9781475542028

  • ISSN:

    1018-5941