Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204436
Authors: 
Noth, Felix
Ossandon Busch, Matias
Year of Publication: 
2019
Series/Report no.: 
IWH Discussion Papers 7/2017
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.
Subjects: 
capital flows reversals
branch funding networks
bank lending
regional labor markets
JEL: 
E24
E44
G01
G21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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