Financial Spillovers to Chile
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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. 2012/254
Subject:
Banking Credit default swap Credit risk Financial markets Financial regulation and supervision Financial services Interbank markets Money Securities markets Yield curve
English
Publication Date:
October 24, 2012
ISBN/ISSN:
9781475552195/1018-5941
Stock No:
WPIEA2012254
Pages:
17
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