Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234706 
Year of Publication: 
2020
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1133
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
Theory suggests both resilience and fragility in banking networks. This paper finds both, exploiting a new database of cross-border syndicated lending to developing countries from 1993 to 2017. Shocks propagate via co-lenders driven by central players, but shocks impacting fringe banks have little impact. The global financial crisis and the appearance of South-South lenders prompted a decline in network centrality, suggesting greater resilience to normal shocks. Multilateral Development Banks may play a catalytic role, but their small size limits their ability to mitigate shock propagation. The ongoing Covid-19 crisis is not a normal shock, is hitting central players and will likely provoke significant contagion.
Subjects: 
Syndicate loans
Shock propagation
Systemic banking crises
Banks
JEL: 
F34
G21
L14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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