Banking globalization, local lending, and labor market effects : micro-level evidence from Brazil / Felix Noth, Matias Ossandon Busch
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Banking globalization, local lending, and labor market effects
Discovery
1677566124
URN
urn:nbn:de:gbv:3:2-112341
DOI
ISBN
ISSN
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Skalierung
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, September 23, 2019
Content
1 Online-Ressource (III, 41 Seiten, 1,03 MB) : Illustration, Diagramme
Edition
This Draft: September 23, 2019
Language
eng
Comment
Abstract
Little is known about how banks’ domestic funding networks affect the transmission of capital flows reversals to the real economy. Our robust results show that a foreign funding shock to banks in Brazil negatively affects lending by their regional branches, especially when they are subjected to funding fragmentation. This effect triggers a sizable drop in credit and job creation at the municipal level. Our findings suggest that despite substitution possibilities across banks and firms, banks’ funding networks matter to explain the distributional effects of foreign financial shocks.
Series
IWH-Diskussionspapiere ; no. 7 (March 2017) ppn:837399270