Berger, Allen N., Karlström, Peter, Karolyi, Stephen A., Ossandon Busch, Matias, Pinzon-Puerto, Freddy and Roman, Raluca A. (2025) Global banking with a Latin American rhythm. Latin American Journal of Central Banking. ISSN 2666-1438 (In Press)
Full text not available from this repository.Abstract
How does global banking impact financial stability and the real economy, particularly in emerging market economies? This paper revisits this question through the lens of new data and recent empirical findings in the banking literature. Considering this evidence, we illustrate how global banks are more prone to engaging in quantity and price credit rationing during crises, particularly when dealing with opaque borrowers abroad. However, in a context where shocks emerge in the real sector — for instance, through trade shocks — global banks can play a key role in making trade flows more resilient. We primarily use Latin America as our region of study as it is a region where globalization and deglobalization have had substantial impacts. Our findings support the notion that prudential financial stability frameworks can help to grasp the benefits of banking globalization while mitigating its downside risks.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2025 Published by Elsevier B.V. on behalf of Center for Latin American Monetary Studies |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HG Finance |
| JEL classification: | F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages |
| Date Deposited: | 25 Nov 2025 16:09 |
| Last Modified: | 16 Dec 2025 20:00 |
| URI: | http://eprints.lse.ac.uk/id/eprint/130318 |
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