Board of Governors of the
Federal Reserve System
Division of International Finance
Washington DC 20551
NBER Working Papers and Publications
|July 2014||Liquidity Risk and U.S. Bank Lending at Home and Abroad|
with Ricardo Correa, Linda S. Goldberg: w20285
While the balance sheet structure of U.S. banks influences how they respond to liquidity risks, the mechanisms for the effects on and consequences for lending vary widely across banks. We demonstrate fundamental differences across banks without foreign affiliates versus those with foreign affiliates. Among the nonglobal banks (those without a foreign affiliate), cross-sectional differences in response to liquidity risk depend on the banks' shares of core deposit funding. By contrast, differences across global banks (those with foreign affiliates) are associated with ex ante liquidity management strategies as reflected in internal borrowing across the global organization. This intra-firm borrowing by banks serves as a shock absorber and affects lending patterns to domestic and foreign cu...
|November 2000||Bank Runs and Banking Policies: Lessons for African Policymakers|
with Edward J. Kane: w8003
This paper documents and explains the near-permanent banking stress African countries have experienced during the last 20 years. The central hypothesis is that banking stress comes predominantly from unbooked losses and that the level of unbooked losses a banking system can accumulate depends on its information environment and on the effectiveness of government efforts to supervise and guarantee bank solvency. African depositors face high costs for mitigating the loss exposures that banks and regulators impose on them and African regulators have not been made accountable for these costs. We present evidence that over 1980-99 the average length of time an African banking system spent in crisis increased with the level of government corruption.
Published: Kane, Edward J. and Tara Rice. “Bank Runs and Banking Policies: Lessons for African Policymakers." Journal of African Economics, Vol. 9, AERC Supplement 2 (2000): 109-144.