Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163118
Authors: 
Xu, Ying
Hai Anh La
Year of Publication: 
2016
Series/Report no.: 
ADBI Working Paper Series 619
Abstract: 
This paper assesses the spillover effects of the United States' unconventional monetary policy (i.e., quantitative easing programs adopted during 2008-2014) on the Asian credit market. With a focus on cross-border bank lending, we employed firm-level loan data with regard to the syndicated loan market and measured the international bank lending channel through changes in United States dollar-denominated loans extended to Asian borrowers. We found that the growth of dollar credit in Asia increased substantially in response to quantitative easing in the United States financial market. The results of this study confirm the existence of the bank lending channel in Asia and emphasize the role of credit flows in transmitting financial conditions. The paper also provides new evidence of cross-border liquidity spillover in the syndicated loan market. We found that the overall spillover effect was large but differed significantly in Asia by types of borrowing firms, financing purposes, and loan terms at different stages of the quantitative easing programs. The paper concludes with a discussion of relevant policy implications for the region.
Subjects: 
Spillovers
unconventional monetary policy
UMP
United States
Asian credit market
credit flows
spillover effects
cross-border liquidity
bank lending channel
JEL: 
F21
F36
G01
G21
G28
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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