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dc.titleResilience and Fragility in Global Banking: Impacts on Emerging Economies
dc.contributor.authorConesa, Marina
dc.contributor.authorLotti, Giulia
dc.contributor.authorPowell, Andrew
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2020-07-22T00:00:00
dc.date.issue2020-07-22T00:00:00
dc.description.abstractTheory suggests both resilience and fragility in banking networks. This paper finds both, exploiting a new database of cross-border syndicated lending to developing countries from 1993 to 2017. Shocks propagate via co-lenders driven by central players, but shocks impacting fringe banks have little impact. The global financial crisis and the appearance of South-South lenders prompted a decline in network centrality, suggesting greater resilience to normal shocks. Multilateral Development Banks may play a catalytic role, but their small size limits their ability to mitigate shock propagation. The ongoing Covid-19 crisis is not a normal shock, is hitting central players and will likely provoke significant contagion.
dc.format.extent33
dc.identifier.doihttp://dx.doi.org/10.18235/0002504
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Resilience-and-Fragility-in-Global-Banking-Impacts-on-Emerging-Economies.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectDevelopment Bank
dc.subjectFinancial Institution
dc.subjectBank Crisis
dc.subjectCommercial Bank
dc.subjectFinancial Stability
dc.subjectGlobal Financial Crisis
dc.subjectSyndicated Loan
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeL14 - Transactional Relationships • Contracts and Reputation • Networks
dc.subject.jelcodeG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
dc.subject.keywordsBanks;Syndicate loans;Shock propagation;Systemic banking crises
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01133
idb.operationRG-K1089
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