Foreign Banks During the Crisis: Sinners or Saints?

Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?

“…In the wake of the 2008-09 global financial crisis, various authors have reassessed the impact of multinational bank subsidiaries on host-country lending stability in specific countries or regions. De Haas et al (2011) find that multinational bank subsidiaries in Emerging Europe cut lending more than domestic banks. Popov and Udell (2010) find similar results for the same region and show that multinational bank lending declined in particular when parent banks were financially weak.…”

Dual Liquidity Crises Under Alternative Monetary Frameworks: A Financial Accounts Perspective

“…Indeed, the massive entry of foreign banks in banking sectors of Latin American and emerging European countries observed since the mid-to late 1990s was welcomed by several observers as a contribution of financial stability in the respective countries (Mishkin 2001(Mishkin , 2006. Evidence on the stabilizing role of foreign banks in emerging markets from the global financial crisis is mixed and regionally different ((De Haas et al (2011), Vogel and Winkler (2012), Claessens and van Horen (2012)), ,also because the crisis had a negative impact on the ability of parent banks to provide funding and keep exposures. As a result, in emerging Europe, the IMF, together with EU institutions, other international financial institutions, home and host country governments and central banks as well as major foreign banks operating in the region established the Vienna Initiative to prevent forced deleveraging and spirals of asset fire sales (IMF 2012).…”

Foreign Banks: Trends, Impact and Financial Stability

“…Since the onset of the global financial crisis, more studies have also pointed out the risks of foreign banking for financial stability. De Haas, Korniyenko, Loukoianova and Pivovarsk (2011) and Popov and Udell (2010) find for emerging European countries that foreign subsidiaries reduced their lending more compared to domestic banks.…”