IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
Jobs at IWH
Vacancies at IWH The Halle Institute for Economic Research (IWH) – Member of the Leibniz Association was founded in 1992. IWH’s tasks are economic research and science-based...
Junior Professorship in Quantitative Macroeconomics (W1) [2022-W1]
Job Vacancy Junior Professorship in Quantitative Macroeconomics (W1) ...
student assistant (f/m/x) for 40 hours a month (Financial Markets)
Vacancy student assistant (f/m/x) for 40 hours a month ...
Lecturers at CGDE Institutions ...
Banking Globalization, Local Lending, and Labor Market Effects: Micro-level Evidence from Brazil
Journal of Financial Stability,
Recent financial crises have prompted the interest in understanding how banking globalization interacts with domestic institutions in shaping foreign shocks’ transmission. This paper uses regional banking data from Brazil to show that a foreign funding shock to banks negatively affects lending by their regional branches. This effect increases in the presence of frictions in internal capital markets, which affect branches’ capacity to access funding from other regions via intra-bank linkages. These results also matter on an aggregate level, as municipality-level credit and job flows drop in exposed regions. Policies aiming to reduce the fragmented structure of regional banking markets could moderate the propagation of foreign shocks.
How Can Macroprudential Policies Transmit Within a Banking Group?
WorldBank All About Finance,
The unexpected shock represented by the COVID-19 pandemic illustrates the importance of building robust macroprudential frameworks to increase countries’ resilience against sudden disruptions in financial markets. By now, a widespread opinion among commentators and policy makers is that the macroprudential frameworks that were implemented over the past decades were effective in moderating market stress, a view supported by ample evidence on the effectiveness of macroprudential policies.
Media Response Archive ...