{
  "title": "Banking Across Borders: Are Chinese Banks Different?",
  "publication": "IMF Working Papers, November 13, 2020",
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  "summary": "We explore the global footprint of Chinese banks and compare it with that of other bank nationalities. Chinese banks have become the largest cross-border creditors for almost half of all emerging market and developing economies (EMDEs).",
  "sections": [
    {
      "heading": "Overview and research question",
      "content": "- Authors: Eugenio M Cerutti, Catherine Koch, Swapan-Kumar Pradhan\n- Publication date: November 13, 2020\n- Central question: How does the global footprint and cross-border lending behavior of Chinese banks compare with that of other bank nationalities?"
    },
    {
      "heading": "Key findings",
      "content": "- Chinese banks have become the largest cross-border creditors for almost half of all emerging market and developing economies (EMDEs).\n- The global reach of Chinese banks resembles that of banks from advanced economies (AEs).\n- International banks, and Chinese banks in particular, grant a substantial share of their cross-border loans from affiliates located abroad; this motivates the study’s nationality approach.\n- Using a gravity model with a novel measure of distance that captures the role of foreign affiliates across all bank nationalities:\n  - Larger distances deter cross-border bank lending to EMDEs more than to AEs.\n  - For Chinese banks, distance deters lending to EMDEs less than for peer EMDE banks.\n- Correlates of bilateral lending:\n  - For all banks combined, bilateral economic interactions—trade, FDI and portfolio investment—positively correlate with lending.\n  - Chinese banks’ lending to EMDEs strongly correlates with trade.\n  - Chinese banks’ lending to EMDEs does not correlate with FDI.\n  - Unlike other banks, Chinese banks’ lending correlates negatively with portfolio investment."
    },
    {
      "heading": "Methodology highlights",
      "content": "- Empirical approach: gravity model.\n- Novelty: a new measure of distance designed to capture the role of foreign affiliates across bank nationalities (used to assess how distance affects cross-border bank lending)."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject areas: Balance of payments, Bank credit, Cross-border banking, Financial institutions, Financial services, Foreign banks, Foreign direct investment, Money, Portfolio investment\n- Keywords: Bank credit; bank lending; borrower country; Chinese bank; Chinese banks; Cross-border banking; cross-border lending; EMDE borrower; FDI; Foreign banks; Foreign direct investment; Global; Gravity model; lending bank; parent country; portfolio investment; Portfolio investment; Trade; U.S. dollar; WP"
    },
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      "heading": "Publication metadata and key statistics",
      "content": "- Series: Working Paper No. 2020/249\n- Issue: 249\n- Volume: 2020\n- Pages: 47\n- DOI: https://doi.org/10.5089/9781513561226.001\n- Stock No: WPIEA2020249\n- ISBN: 9781513561226\n- ISSN: 1018-5941\n- Preview citation (format: Chicago) on page: Eugenio M Cerutti, Catherine Koch, and Swapan-Kumar Pradhan. \"Banking Across Borders: Are Chinese Banks Different?\", IMF Working Papers 2020, 249 (2020), accessed 9/9/2026, https://doi.org/10.5089/9781513561226.001\n\nIMF Working Paper No. 2020/249 (November 13, 2020) — summary based on the page “Banking Across Borders: Are Chinese Banks Different?”\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/11/13/banking-across-borders-are-chinese-banks-different-49785"
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    "Authors: Eugenio M Cerutti, Catherine Koch, Swapan-Kumar Pradhan",
    "Published: November 13, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513561226.001",
    "Authors: Eugenio M Cerutti, Catherine Koch, Swapan-Kumar Pradhan",
    "Publication date: November 13, 2020",
    "Central question: How does the global footprint and cross-border lending behavior of Chinese banks compare with that of other bank nationalities?",
    "Chinese banks have become the largest cross-border creditors for almost half of all emerging market and developing economies (EMDEs).",
    "The global reach of Chinese banks resembles that of banks from advanced economies (AEs).",
    "International banks, and Chinese banks in particular, grant a substantial share of their cross-border loans from affiliates located abroad; this motivates the study’s nationality approach.",
    "Using a gravity model with a novel measure of distance that captures the role of foreign affiliates across all bank nationalities:",
    "Correlates of bilateral lending:",
    "Empirical approach: gravity model.",
    "Novelty: a new measure of distance designed to capture the role of foreign affiliates across bank nationalities (used to assess how distance affects cross-border bank lending).",
    "Subject areas: Balance of payments, Bank credit, Cross-border banking, Financial institutions, Financial services, Foreign banks, Foreign direct investment, Money, Portfolio investment",
    "Keywords: Bank credit; bank lending; borrower country; Chinese bank; Chinese banks; Cross-border banking; cross-border lending; EMDE borrower; FDI; Foreign banks; Foreign direct investment; Global; Gravity model; lending bank; parent country; portfolio investment; Portfolio investment; Trade; U.S. dollar; WP",
    "Series: Working Paper No. 2020/249",
    "Issue: 249",
    "Volume: 2020",
    "Pages: 47",
    "DOI: https://doi.org/10.5089/9781513561226.001",
    "Stock No: WPIEA2020249",
    "ISBN: 9781513561226",
    "ISSN: 1018-5941",
    "Preview citation (format: Chicago) on page: Eugenio M Cerutti, Catherine Koch, and Swapan-Kumar Pradhan. \"Banking Across Borders: Are Chinese Banks Different?\", IMF Working Papers 2020, 249 (2020), accessed 9/9/2026, https://doi.org/10.5089/9781513561226.001",
    "**Working Paper**"
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