This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 3 (May 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Follow the Money: Quantifying Domestic Effects of Foreign Bank Shocks in the Great Recession

Article Citation

Cetorelli, Nicola, and Linda S. Goldberg. 2012. "Follow the Money: Quantifying Domestic Effects of Foreign Bank Shocks in the Great Recession." American Economic Review, 102(3): 213-18.

DOI: 10.1257/aer.102.3.213

Abstract

Foreign banks pulled significant funding from their US branches during the Great Recession. We estimate that the average-sized branch experienced a twelve percent net internal fund "withdrawal," with the fund transfer disproportionately bigger for larger branches. This internal shock to the balance sheet of US branches of foreign banks had sizable effects on their lending. On average, for each dollar of funds transferred internally to the parent, branches decreased lending supply by about forty to fifty cents. However, the extent of the lending effects was very different across branches depending on their pre-crisis modes of operation in the United States.

Article Full-Text Access

Full-text Article

Authors

Cetorelli, Nicola (Federal Reserve Bank of New York)
Goldberg, Linda S. (Federal Reserve Bank of New York)

JEL Classifications

E32: Business Fluctuations; Cycles
G21: Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
E44: Financial Markets and the Macroeconomy
F23: Multinational Firms; International Business
G01: Financial Crises


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us