Monitoring Costs and Multinational-Bank Lending

Preprint OPEN
Ralph de Haas;
  • Subject: multinational banks; monitoring; credit supply.
    • jel: jel:F23 | jel:G21 | jel:F15 | jel:F36

We use a two-country model to examine how endogenous changes in monitoring intensity and exogenous changes in monitoring efficiency affect multinational-bank lending. First, an endogenous decline in monitoring intensity limits the amount of deposits that banks can attra... View more
  • References (20)
    20 references, page 1 of 2

    3. See Demirgüç-Kunt and Huizinga (1999), Claessens et al. (2001), Unite and Sullivan (2003) and Lensink and Hermes (2004).

    4. Focarelli and Pozzolo (2000) find that banks that expand abroad are amongst the most efficient banks in their home country and come from the most developed banking markets. At the same time, they expand to countries in which the banking sectors are less efficient.

    5. Dages et al. (2000), Peek and Rosengren (2000b), Goldberg (2001), Crystal et al. (2002), Martinez Peria et al. (2002) and De Haas and Van Lelyveld (2004, 2006).

    6. Peek and Rosengren (1997, 2000a) and Van Rijckeghem and Weder (2001).

    7. Dahl and Shrieves (1999), Buch (2000), Barajas and Steiner (2002), Jeanneau and Micu (2002), Morgan and Strahan (2004) and De Haas and Van Lelyveld (2006).

    8. Calvo et al. (1993), Hernandez and Rudolph (1995), Dahl and Shrieves (1999), Goldberg (2001), Jeanneau and Micu (2002), Martinez Peria et al. (2002) and De Haas and Van Lelyveld (2006). Depending on the sample period and the sample of countries, some studies find a positive correlation between multinational-bank lending and the home-country business cycle, while other studies find a negative relationship.

    Clarke, G., R. Cull, M.S. Martinez Peria and S.M. Sánchez (2005), Bank lending to small businesses in Latin America: Does bank origin matter?, Journal of Money, Credit, and Banking, 37, 83-118.

    Crystal, J.S., B.G. Dages and L.S. Goldberg (2002), Has foreign bank entry led to sounder banks in Latin America?, Current Issues in Economics and Finance, 8(1), 1-6.

    Dages, B.G., L.S. Goldberg and D. Kinney (2000), Foreign and domestic bank participation in emerging markets: Lessons from Mexico and Argentina, Federal Reserve Bank of New York Economic Policy Review, September, 17-36.

    Dahl, D. and R.E. Shrieves (1999), The extension of international credit by US banks: A disaggregated analysis, 1988-1994, Journal of International Money and Finance, 18, 153-167.

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