000			03107cam a22003857 4500
001			w18528
003			NBER
005			20211020110435.0
006			m o d
007			cr cnu||||||||
008			210910s2012 mau fo 000 0 eng d
100	1		_aIvashina, Victoria. _932453
245	1	0	_aDollar Funding and the Lending Behavior of Global Banks / _cVictoria Ivashina, David S. Scharfstein, Jeremy C. Stein.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2012.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w18528
500			_aNovember 2012.
520	3		_aA large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the shock leads to a greater withdrawal of dollar funding. Banks can borrow in euros and swap into dollars to make up for the dollar shortfall, but this may lead to violations of covered interest parity (CIP) when there is limited capital to take the other side of the swap trade. In this case, synthetic dollar borrowing becomes expensive, which causes cuts in dollar lending. We test the model in the context of the Eurozone sovereign crisis, which escalated in the second half of 2011 and resulted in U.S. money-market funds sharply reducing the funding provided to European banks. Coincident with the contraction in dollar funding, there were significant violations of euro-dollar CIP. Moreover, dollar lending by Eurozone banks fell relative to their euro lending in both the U.S. and Europe; this was not the case for U.S. global banks. Finally, European banks that were more reliant on money funds experienced bigger declines in dollar lending.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF36 - Financial Aspects of Economic Integration _2Journal of Economic Literature class.
690		7	_aF44 - International Business Cycles _2Journal of Economic Literature class.
690		7	_aF6 - Economic Impacts of Globalization _2Journal of Economic Literature class.
690		7	_aG01 - Financial Crises _2Journal of Economic Literature class.
690		7	_aG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages _2Journal of Economic Literature class.
700	1		_aScharfstein, David S. _920294
700	1		_aStein, Jeremy C. _921153
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w18528.
856	4	0	_uhttps://www.nber.org/papers/w18528
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w18528
942			_2ddc _cW-PAPER
999			_c329594 _d288156