{
  "title": "Crisis Transmission in the Global Banking Network",
  "publication": "IMF Working Papers, April 12, 2016",
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  "summary": "We study the transmission of financial sector shocks across borders through international bank connections. For this purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global network of interbank exposures.",
  "sections": [
    {
      "heading": "Overview and metadata",
      "content": "- Title: Crisis Transmission in the Global Banking Network\n- Authors: Galina Hale, Tümer Kapan, Camelia Minoiu\n- Date: April 12, 2016\n- Series: Working Paper No. 2016/091\n- Issue: 091\n- Volume: 2016\n- Pages: 38\n- ISBN: 9781475551341\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research question and data",
      "content": "- Objective: Study the transmission of financial sector shocks across borders through international bank connections.\n- Data:\n  - long-term interbank loans among more than 6,000 banks\n  - sample period: 1997-2012\n  - constructed a yearly global network of interbank exposures"
    },
    {
      "heading": "Methodology",
      "content": "- Exposure types analyzed:\n  - direct (first-degree) exposures\n  - indirect (second-degree) exposures\n- Outcomes examined:\n  - bank profitability (returns)\n  - loan supply (domestic and cross-border)"
    },
    {
      "heading": "Key findings",
      "content": "- Direct exposures to crisis countries:\n  - \"squeeze banks' profit margins, thereby reducing their returns.\"\n- Indirect exposures:\n  - indirect exposures to crisis countries enhance the negative effect on profitability.\n  - indirect exposures to non-crisis countries mitigate the negative effect on profitability.\n- Real (real-economy) effects:\n  - crisis exposures reduce banks' supply of domestic loans.\n  - crisis exposures reduce banks' supply of cross-border loans.\n- General conclusion:\n  - Results, based on a large global sample, support the notion that interconnected financial systems facilitate shock transmission."
    },
    {
      "heading": "Subject classification and keywords",
      "content": "- Subject: Bank credit, Banking, Banking crises, Financial crises, Financial institutions, Foreign currency exposure, Loans, Money, Syndicated loans, Systemic crises\n- Keywords: balance sheet, bank level, bank performance, bank type, Banking crises, commercial bank, crisis exposure, financial networks, Foreign currency exposure, Global, Loans, long-term interbank exposures, return on assets, shock transmission, syndicated loan, syndicated loans, systemic banking crises, Systemic crises, WP\n\nItalic: Content derived from IMF Working Paper \"Crisis Transmission in the Global Banking Network\" (Working Paper No. 2016/091) by Galina Hale, Tümer Kapan, and Camelia Minoiu, April 12, 2016.\n\n---\n\n Content in this bundle\n\n- wp1691\n  - wp1691 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1691 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/crisis-transmission-in-the-global-banking-network-43865"
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    "Authors: Galina Hale, Tümer Kapan, Camelia Minoiu",
    "Published: April 12, 2016",
    "Series: IMF Working Papers",
    "Title: Crisis Transmission in the Global Banking Network",
    "Authors: Galina Hale, Tümer Kapan, Camelia Minoiu",
    "Date: April 12, 2016",
    "Series: Working Paper No. 2016/091",
    "Issue: 091",
    "Volume: 2016",
    "Pages: 38",
    "ISBN: 9781475551341",
    "ISSN: 1018-5941",
    "Objective: Study the transmission of financial sector shocks across borders through international bank connections.",
    "Data:",
    "Exposure types analyzed:",
    "Outcomes examined:",
    "Direct exposures to crisis countries:",
    "Indirect exposures:",
    "Real (real-economy) effects:",
    "General conclusion:",
    "Subject: Bank credit, Banking, Banking crises, Financial crises, Financial institutions, Foreign currency exposure, Loans, Money, Syndicated loans, Systemic crises",
    "Keywords: balance sheet, bank level, bank performance, bank type, Banking crises, commercial bank, crisis exposure, financial networks, Foreign currency exposure, Global, Loans, long-term interbank exposures, return on assets, shock transmission, syndicated loan, syndicated loans, systemic banking crises, Systemic crises, WP",
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