Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"":
The removal of government guarantees in borrowing countries does not eliminate the moral hazard problem posed by the existence of deposit guarantees in lender countries. The paper shows that, after restrictions on international capital flows are lifted, banks in low-risk developed countries benefit...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1999
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Schriftenreihe: | IMF Working Papers
Working Paper No. 99/100 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The removal of government guarantees in borrowing countries does not eliminate the moral hazard problem posed by the existence of deposit guarantees in lender countries. The paper shows that, after restrictions on international capital flows are lifted, banks in low-risk developed countries benefit from lending funds captured in home markets at low deposit rates to high-risk/high-yield projects in emerging economies, even though these projects command lower expected returns. This, in turn, has a negative impact on bank profitability in the borrowing country, even when foreign funds are intermediated through domestic banks. The results are consistent with the surge in international bank lending flows that led to recent banking crises in Asia |
Beschreibung: | 1 Online-Ressource (22 p) |
ISBN: | 145185238X 9781451852387 |
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spelling | Levy Yeyati, Eduardo Verfasser aut Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" Levy Yeyati, Eduardo Washington, D.C International Monetary Fund 1999 1 Online-Ressource (22 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 99/100 The removal of government guarantees in borrowing countries does not eliminate the moral hazard problem posed by the existence of deposit guarantees in lender countries. The paper shows that, after restrictions on international capital flows are lifted, banks in low-risk developed countries benefit from lending funds captured in home markets at low deposit rates to high-risk/high-yield projects in emerging economies, even though these projects command lower expected returns. This, in turn, has a negative impact on bank profitability in the borrowing country, even when foreign funds are intermediated through domestic banks. The results are consistent with the surge in international bank lending flows that led to recent banking crises in Asia Online-Ausg http://elibrary.imf.org/view/IMF001/02844-9781451852387/02844-9781451852387/02844-9781451852387.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Levy Yeyati, Eduardo Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title_auth | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title_exact_search | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title_exact_search_txtP | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title_full | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" Levy Yeyati, Eduardo |
title_fullStr | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" Levy Yeyati, Eduardo |
title_full_unstemmed | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" Levy Yeyati, Eduardo |
title_short | Global Moral Hazard, Capital Account Liberalization and the ""Overlending Syndrome"" |
title_sort | global moral hazard capital account liberalization and the overlending syndrome |
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