Publications

Occasional Papers

(OCC 54) How Should We Bank With Foreigners An Empirical Assessment of Lending Behaviour of International Banks to Six East Asian Economies by Victor Pontines and Reza Y. Siregar

Publish Date : March 2012
Author: Victor Pontines and Reza Y. Siregar
ISBN: 978-983-9478-13-6
Pages: 27
Price: US 8.00

Summary


The possible crucial role of international bank lending in the transmission of adverse economic disturbance from advanced economies to emerging economies in the recent global financial crisis has once again placed this type of capital flows into sharper scrutiny both in academic and policy discussions. We construct macro-and micro-panel data on international bank lending to six Asian economies viz. Indonesia Korea Malaysia Philippines Singapore and Thailand to analyse a number of objectives. We first examine the influence of a number of critical determinants not only to overall international bank lending but also to cross-border bank lending and obtained one critical finding in this part of the study that cross-border lending by international banks tend to pull-out from host economies during difficult times in source economies whereas such retrenchments are not evident on an aggregated basis.