Financial connectivity and excessive liquidity: benefit or risk?

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buir.contributor.authorDemir, Müge
buir.contributor.authorÖnder, Zeynep
dc.citation.epage221en_US
dc.citation.spage203en_US
dc.citation.volumeNumber62en_US
dc.contributor.authorDemir, Mügeen_US
dc.contributor.authorÖnder, Zeynepen_US
dc.date.accessioned2020-02-04T11:20:24Z
dc.date.available2020-02-04T11:20:24Z
dc.date.issued2019
dc.departmentDepartment of Managementen_US
dc.description.abstractThis paper explores the structure of cross-border lending market by using network analysis and examines the relationship between financial connectivity and probability of systemic crises during normal, credit boom and capital inflow upsurge periods, controlling for macroeconomic variables. A country-level panel data set for bank-to-bank and bank-to-non-bank cross-border lending markets of 13 advanced economies is used in the analysis for the 1978–2016 period. We find that a rise in financial connectivity reduces the probability of systemic crises. However, this effect is found to be mitigated or completely eliminated in credit boom and capital inflow upsurge periods in both markets. The findings suggest that bank-to-non-bank lending market is more stable in terms of both the number and the amount of lending relationships and recovered faster than bank-to-bank lending market following the recent global financial crisis.en_US
dc.description.provenanceSubmitted by Onur Emek (onur.emek@bilkent.edu.tr) on 2020-02-04T11:20:24Z No. of bitstreams: 1 Bilkent-research-paper.pdf: 268963 bytes, checksum: ad2e3a30c8172b573b9662390ed2d3cf (MD5)en
dc.description.provenanceMade available in DSpace on 2020-02-04T11:20:24Z (GMT). No. of bitstreams: 1 Bilkent-research-paper.pdf: 268963 bytes, checksum: ad2e3a30c8172b573b9662390ed2d3cf (MD5) Previous issue date: 2019en
dc.embargo.release2021-09-01
dc.identifier.doi10.1016/j.intfin.2019.07.004en_US
dc.identifier.issn1042-4431
dc.identifier.urihttp://hdl.handle.net/11693/53053
dc.language.isoEnglishen_US
dc.publisherElsevieren_US
dc.relation.isversionofhttps://dx.doi.org/10.1016/j.intfin.2019.07.004en_US
dc.source.titleJournal of International Financial Markets, Institutions and Moneyen_US
dc.subjectCross-border bankingen_US
dc.subjectNetwork analysisen_US
dc.subjectFinancial connectivityen_US
dc.subjectSystemic crisesen_US
dc.titleFinancial connectivity and excessive liquidity: benefit or risk?en_US
dc.typeArticleen_US

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