Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries

Just before the 2008-09 global financial crisis, policymakers were concerned about the rapid growth of bank credit, particularly in Europe; now worry centers on a potential global credit crunch led by European banking institutions. Overall, credit conditions across Europe deteriorated markedly in la...

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Main Authors: Feyen, Erik, Kibuuka, Katie, Ötker-Robe, İnci
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
BID
CDS
Online Access:http://documents.worldbank.org/curated/en/2012/06/16364130/bank-deleveraging-causes-channels-consequences-emerging-market-developing-countries
http://hdl.handle.net/10986/9317
id okr-10986-9317
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO CREDIT
ACCESS TO FINANCE
ACCESS TO MARKET
ACCOUNTING
ADVANCED ECONOMIES
AFFILIATE
AFFILIATES
ASSET MANAGEMENT
ASSET MANAGERS
ASSET SALES
ASSET VALUES
ASSET-LIABILITY MANAGEMENT
BAILOUT
BALANCE SHEET
BALANCE SHEETS
BANK ASSETS
BANK BALANCE SHEETS
BANK BEHAVIOR
BANK BRANCHES
BANK CREDIT
BANK DEPOSITS
BANK EQUITIES
BANK EXPOSURE
BANK FOR INTERNATIONAL SETTLEMENTS
BANK LENDING
BANK LIQUIDITY
BANK LOANS
BANKING CRISES
BANKING CRISIS
BANKING INSTITUTIONS
BANKING SECTORS
BANKING SYSTEM
BANKING SYSTEMS
BANKS
BASIS POINTS
BIASES
BID
BOARDS OF DIRECTORS
BOND ISSUANCE
BOND MARKET
BOND MARKETS
BOND SPREADS
BOND YIELDS
BONDHOLDERS
BORROWER
BORROWING
BORROWING COSTS
BUSINESS PLANNING
BUSINESS STRATEGIES
CAPITAL ACCUMULATION
CAPITAL FLOWS
CAPITAL GAIN
CAPITAL MARKETS
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPITAL SHORTAGE
CAPITALIZATION
CDS
CENTRAL BANKS
COLLATERAL
COLLATERAL REQUIREMENTS
CONSOLIDATION
CONVERTIBLE BONDS
CREDIBILITY
CREDIT CRUNCH
CREDIT EXTENSION
CREDIT GROWTH
CREDIT LINE
CREDIT NEEDS
CREDIT RATING
CREDIT RATINGS
CREDIT RISKS
CREDITOR
CREDITORS
CROSS-BORDER FLOWS
DEBT
DEBT CRISIS
DEBT HOLDINGS
DEBT RESTRUCTURING
DEBTOR
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DISINTERMEDIATION
DISTRESSED BANKS
ECONOMIC ACTIVITY
ECONOMIC AGENTS
ECONOMIC GROWTH
EMERGING ECONOMIES
EMERGING MARKET
EMERGING MARKET ECONOMIES
EMERGING MARKETS
EMPLOYMENT
EQUITIES
EQUITY CAPITAL
EQUITY RATIO
EUROPEAN CENTRAL BANK
EXTERNAL FINANCE
FINANCIAL ASSISTANCE
FINANCIAL CRISIS
FINANCIAL DIFFICULTIES
FINANCIAL INSTITUTIONS
FINANCIAL MARKET
FINANCIAL MARKET PARTICIPANTS
FINANCIAL MARKETS
FINANCIAL SECTOR REFORMS
FINANCIAL STABILITY
FINANCIAL SYSTEM
FINANCIAL SYSTEMS
FOREIGN BANKS
FUNDING SOURCES
GLOBAL FINANCIAL STABILITY
GLOBAL TRADE
GOVERNMENT BONDS
GOVERNMENT DEBT
GOVERNMENT SECURITIES
HEDGE FUNDS
HOLDING
HOLDINGS
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMIES
HOUSEHOLDS
INDEBTEDNESS
INFLATION
INFORMATION SHARING
INFRASTRUCTURE FINANCE
INSTRUMENT
INSURANCE
INTERBANK MARKETS
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL FINANCE
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERNATIONAL FINANCIAL STATISTICS
INVESTING
INVESTMENT BANK
INVESTMENT BANKING
INVESTOR INTEREST
ISLAMIC BONDS
LACK OF INFORMATION
LEGISLATION
LENDER
LENDERS
LENDING CONDITION
LENDING CONDITIONS
LIABILITY
LIABILITY MANAGEMENT
LIMITED ACCESS
LIQUIDITY POSITION
LOAN
LOAN COMMITMENTS
LOAN DEMAND
LOAN FACILITY
LOAN PORTFOLIO
LOAN PORTFOLIOS
LOCAL CURRENCIES
LOW INTEREST RATE
MARKET CONDITIONS
MARKET CONFIDENCE
MARKET LENDING
MARKET PRICES
MARKET SHARE
MATURITIES
MATURITY
MFIS
MONETARY FUND
MONEY MARKET
MORAL HAZARD
MORTGAGES
NEW BUSINESS
NONBANK INSTITUTIONS
NONPERFORMING LOANS
OVERDRAFTS
PAR VALUES
PRIVATE BANKS
PRIVATE CREDIT
PRIVATE EQUITY
PRODUCTIVITY
PROFITABILITY
PROVISION OF CREDIT
REAL ESTATE
REAL SECTOR
RECAPITALIZATION
RECESSION
REGIONAL CREDIT
REGULATORY APPROACHES
REGULATORY AUTHORITIES
RELIANCE ON BOND
REPOS
RESERVE
RESERVE REQUIREMENTS
RESERVES
RETAIL BANKING
RETAIL BANKS
RETAINED EARNINGS
RETURN
RETURN ON EQUITY
RISK AVERSION
RISK MANAGEMENT
SALES OF ASSETS
SAVINGS
SAVINGS BANK
SECONDARY MARKETS
SELF- FINANCING
SMALL BANKS
SOLVENCY
SOURCES OF FUNDS
SOVEREIGN BOND
SOVEREIGN BOND MARKETS
SOVEREIGN BONDS
SOVEREIGN DEBT
SOVEREIGN DEBT MARKETS
SOVEREIGN RISKS
SOVEREIGN YIELD
START-UP
STATE SUPPORT
STOCK MARKET
STOCK MARKET INDEXES
SUBSIDIARIES
SUBSIDIARY
SUPERVISORY AUTHORITIES
SWAP
SYSTEMIC RISK
TIER 1 CAPITAL
TOTAL DEBT
TRADE FINANCE
TRADE FINANCING
TRADING
TREATY
UNION
UNIVERSAL BANKS
VALUATION
WHOLESALE FUNDING
WITHDRAWAL
YIELD CURVES
spellingShingle ACCESS TO CREDIT
ACCESS TO FINANCE
ACCESS TO MARKET
ACCOUNTING
ADVANCED ECONOMIES
AFFILIATE
AFFILIATES
ASSET MANAGEMENT
ASSET MANAGERS
ASSET SALES
ASSET VALUES
ASSET-LIABILITY MANAGEMENT
BAILOUT
BALANCE SHEET
BALANCE SHEETS
BANK ASSETS
BANK BALANCE SHEETS
BANK BEHAVIOR
BANK BRANCHES
BANK CREDIT
BANK DEPOSITS
BANK EQUITIES
BANK EXPOSURE
BANK FOR INTERNATIONAL SETTLEMENTS
BANK LENDING
BANK LIQUIDITY
BANK LOANS
BANKING CRISES
BANKING CRISIS
BANKING INSTITUTIONS
BANKING SECTORS
BANKING SYSTEM
BANKING SYSTEMS
BANKS
BASIS POINTS
BIASES
BID
BOARDS OF DIRECTORS
BOND ISSUANCE
BOND MARKET
BOND MARKETS
BOND SPREADS
BOND YIELDS
BONDHOLDERS
BORROWER
BORROWING
BORROWING COSTS
BUSINESS PLANNING
BUSINESS STRATEGIES
CAPITAL ACCUMULATION
CAPITAL FLOWS
CAPITAL GAIN
CAPITAL MARKETS
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPITAL SHORTAGE
CAPITALIZATION
CDS
CENTRAL BANKS
COLLATERAL
COLLATERAL REQUIREMENTS
CONSOLIDATION
CONVERTIBLE BONDS
CREDIBILITY
CREDIT CRUNCH
CREDIT EXTENSION
CREDIT GROWTH
CREDIT LINE
CREDIT NEEDS
CREDIT RATING
CREDIT RATINGS
CREDIT RISKS
CREDITOR
CREDITORS
CROSS-BORDER FLOWS
DEBT
DEBT CRISIS
DEBT HOLDINGS
DEBT RESTRUCTURING
DEBTOR
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DISINTERMEDIATION
DISTRESSED BANKS
ECONOMIC ACTIVITY
ECONOMIC AGENTS
ECONOMIC GROWTH
EMERGING ECONOMIES
EMERGING MARKET
EMERGING MARKET ECONOMIES
EMERGING MARKETS
EMPLOYMENT
EQUITIES
EQUITY CAPITAL
EQUITY RATIO
EUROPEAN CENTRAL BANK
EXTERNAL FINANCE
FINANCIAL ASSISTANCE
FINANCIAL CRISIS
FINANCIAL DIFFICULTIES
FINANCIAL INSTITUTIONS
FINANCIAL MARKET
FINANCIAL MARKET PARTICIPANTS
FINANCIAL MARKETS
FINANCIAL SECTOR REFORMS
FINANCIAL STABILITY
FINANCIAL SYSTEM
FINANCIAL SYSTEMS
FOREIGN BANKS
FUNDING SOURCES
GLOBAL FINANCIAL STABILITY
GLOBAL TRADE
GOVERNMENT BONDS
GOVERNMENT DEBT
GOVERNMENT SECURITIES
HEDGE FUNDS
HOLDING
HOLDINGS
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMIES
HOUSEHOLDS
INDEBTEDNESS
INFLATION
INFORMATION SHARING
INFRASTRUCTURE FINANCE
INSTRUMENT
INSURANCE
INTERBANK MARKETS
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL FINANCE
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERNATIONAL FINANCIAL STATISTICS
INVESTING
INVESTMENT BANK
INVESTMENT BANKING
INVESTOR INTEREST
ISLAMIC BONDS
LACK OF INFORMATION
LEGISLATION
LENDER
LENDERS
LENDING CONDITION
LENDING CONDITIONS
LIABILITY
LIABILITY MANAGEMENT
LIMITED ACCESS
LIQUIDITY POSITION
LOAN
LOAN COMMITMENTS
LOAN DEMAND
LOAN FACILITY
LOAN PORTFOLIO
LOAN PORTFOLIOS
LOCAL CURRENCIES
LOW INTEREST RATE
MARKET CONDITIONS
MARKET CONFIDENCE
MARKET LENDING
MARKET PRICES
MARKET SHARE
MATURITIES
MATURITY
MFIS
MONETARY FUND
MONEY MARKET
MORAL HAZARD
MORTGAGES
NEW BUSINESS
NONBANK INSTITUTIONS
NONPERFORMING LOANS
OVERDRAFTS
PAR VALUES
PRIVATE BANKS
PRIVATE CREDIT
PRIVATE EQUITY
PRODUCTIVITY
PROFITABILITY
PROVISION OF CREDIT
REAL ESTATE
REAL SECTOR
RECAPITALIZATION
RECESSION
REGIONAL CREDIT
REGULATORY APPROACHES
REGULATORY AUTHORITIES
RELIANCE ON BOND
REPOS
RESERVE
RESERVE REQUIREMENTS
RESERVES
RETAIL BANKING
RETAIL BANKS
RETAINED EARNINGS
RETURN
RETURN ON EQUITY
RISK AVERSION
RISK MANAGEMENT
SALES OF ASSETS
SAVINGS
SAVINGS BANK
SECONDARY MARKETS
SELF- FINANCING
SMALL BANKS
SOLVENCY
SOURCES OF FUNDS
SOVEREIGN BOND
SOVEREIGN BOND MARKETS
SOVEREIGN BONDS
SOVEREIGN DEBT
SOVEREIGN DEBT MARKETS
SOVEREIGN RISKS
SOVEREIGN YIELD
START-UP
STATE SUPPORT
STOCK MARKET
STOCK MARKET INDEXES
SUBSIDIARIES
SUBSIDIARY
SUPERVISORY AUTHORITIES
SWAP
SYSTEMIC RISK
TIER 1 CAPITAL
TOTAL DEBT
TRADE FINANCE
TRADE FINANCING
TRADING
TREATY
UNION
UNIVERSAL BANKS
VALUATION
WHOLESALE FUNDING
WITHDRAWAL
YIELD CURVES
Feyen, Erik
Kibuuka, Katie
Ötker-Robe, İnci
Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
description Just before the 2008-09 global financial crisis, policymakers were concerned about the rapid growth of bank credit, particularly in Europe; now worry centers on a potential global credit crunch led by European banking institutions. Overall, credit conditions across Europe deteriorated markedly in late 2011. Spillover effects are being felt around the globe and imply significant channels through which deleveraging could have disruptive consequences for credit conditions in emerging markets, particularly in emerging Europe. Significant liquidity support provided by the European Central Bank was a "game changer," at least in the short term, as it helped revive markets and limited the risk of disorderly deleveraging. However, the extent, speed, and impact of European bank deleveraging remain highly dependent on the evolution of economic growth and market conditions, which in turn are guided by the ultimate impact of European Central Bank liquidity support, resolution of the sovereign debt crisis within the Euro Area, and the ability of the European rescue fund to provide an effective firewall against contagion.
format Publications & Research :: Policy Research Working Paper
author Feyen, Erik
Kibuuka, Katie
Ötker-Robe, İnci
author_facet Feyen, Erik
Kibuuka, Katie
Ötker-Robe, İnci
author_sort Feyen, Erik
title Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
title_short Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
title_full Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
title_fullStr Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
title_full_unstemmed Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries
title_sort bank deleveraging : causes, channels, and consequences for emerging market and developing countries
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/06/16364130/bank-deleveraging-causes-channels-consequences-emerging-market-developing-countries
http://hdl.handle.net/10986/9317
_version_ 1764409133373587456
spelling okr-10986-93172021-04-23T14:02:45Z Bank Deleveraging : Causes, Channels, and Consequences for Emerging Market and Developing Countries Feyen, Erik Kibuuka, Katie Ötker-Robe, İnci ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO MARKET ACCOUNTING ADVANCED ECONOMIES AFFILIATE AFFILIATES ASSET MANAGEMENT ASSET MANAGERS ASSET SALES ASSET VALUES ASSET-LIABILITY MANAGEMENT BAILOUT BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BALANCE SHEETS BANK BEHAVIOR BANK BRANCHES BANK CREDIT BANK DEPOSITS BANK EQUITIES BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LIQUIDITY BANK LOANS BANKING CRISES BANKING CRISIS BANKING INSTITUTIONS BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BANKS BASIS POINTS BIASES BID BOARDS OF DIRECTORS BOND ISSUANCE BOND MARKET BOND MARKETS BOND SPREADS BOND YIELDS BONDHOLDERS BORROWER BORROWING BORROWING COSTS BUSINESS PLANNING BUSINESS STRATEGIES CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL GAIN CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL SHORTAGE CAPITALIZATION CDS CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENTS CONSOLIDATION CONVERTIBLE BONDS CREDIBILITY CREDIT CRUNCH CREDIT EXTENSION CREDIT GROWTH CREDIT LINE CREDIT NEEDS CREDIT RATING CREDIT RATINGS CREDIT RISKS CREDITOR CREDITORS CROSS-BORDER FLOWS DEBT DEBT CRISIS DEBT HOLDINGS DEBT RESTRUCTURING DEBTOR DEPOSIT DEPOSITS DEVELOPING COUNTRIES DISINTERMEDIATION DISTRESSED BANKS ECONOMIC ACTIVITY ECONOMIC AGENTS ECONOMIC GROWTH EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EMPLOYMENT EQUITIES EQUITY CAPITAL EQUITY RATIO EUROPEAN CENTRAL BANK EXTERNAL FINANCE FINANCIAL ASSISTANCE FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKET PARTICIPANTS FINANCIAL MARKETS FINANCIAL SECTOR REFORMS FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANKS FUNDING SOURCES GLOBAL FINANCIAL STABILITY GLOBAL TRADE GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SECURITIES HEDGE FUNDS HOLDING HOLDINGS HOST COUNTRIES HOST COUNTRY HOST ECONOMIES HOUSEHOLDS INDEBTEDNESS INFLATION INFORMATION SHARING INFRASTRUCTURE FINANCE INSTRUMENT INSURANCE INTERBANK MARKETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INVESTING INVESTMENT BANK INVESTMENT BANKING INVESTOR INTEREST ISLAMIC BONDS LACK OF INFORMATION LEGISLATION LENDER LENDERS LENDING CONDITION LENDING CONDITIONS LIABILITY LIABILITY MANAGEMENT LIMITED ACCESS LIQUIDITY POSITION LOAN LOAN COMMITMENTS LOAN DEMAND LOAN FACILITY LOAN PORTFOLIO LOAN PORTFOLIOS LOCAL CURRENCIES LOW INTEREST RATE MARKET CONDITIONS MARKET CONFIDENCE MARKET LENDING MARKET PRICES MARKET SHARE MATURITIES MATURITY MFIS MONETARY FUND MONEY MARKET MORAL HAZARD MORTGAGES NEW BUSINESS NONBANK INSTITUTIONS NONPERFORMING LOANS OVERDRAFTS PAR VALUES PRIVATE BANKS PRIVATE CREDIT PRIVATE EQUITY PRODUCTIVITY PROFITABILITY PROVISION OF CREDIT REAL ESTATE REAL SECTOR RECAPITALIZATION RECESSION REGIONAL CREDIT REGULATORY APPROACHES REGULATORY AUTHORITIES RELIANCE ON BOND REPOS RESERVE RESERVE REQUIREMENTS RESERVES RETAIL BANKING RETAIL BANKS RETAINED EARNINGS RETURN RETURN ON EQUITY RISK AVERSION RISK MANAGEMENT SALES OF ASSETS SAVINGS SAVINGS BANK SECONDARY MARKETS SELF- FINANCING SMALL BANKS SOLVENCY SOURCES OF FUNDS SOVEREIGN BOND SOVEREIGN BOND MARKETS SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEBT MARKETS SOVEREIGN RISKS SOVEREIGN YIELD START-UP STATE SUPPORT STOCK MARKET STOCK MARKET INDEXES SUBSIDIARIES SUBSIDIARY SUPERVISORY AUTHORITIES SWAP SYSTEMIC RISK TIER 1 CAPITAL TOTAL DEBT TRADE FINANCE TRADE FINANCING TRADING TREATY UNION UNIVERSAL BANKS VALUATION WHOLESALE FUNDING WITHDRAWAL YIELD CURVES Just before the 2008-09 global financial crisis, policymakers were concerned about the rapid growth of bank credit, particularly in Europe; now worry centers on a potential global credit crunch led by European banking institutions. Overall, credit conditions across Europe deteriorated markedly in late 2011. Spillover effects are being felt around the globe and imply significant channels through which deleveraging could have disruptive consequences for credit conditions in emerging markets, particularly in emerging Europe. Significant liquidity support provided by the European Central Bank was a "game changer," at least in the short term, as it helped revive markets and limited the risk of disorderly deleveraging. However, the extent, speed, and impact of European bank deleveraging remain highly dependent on the evolution of economic growth and market conditions, which in turn are guided by the ultimate impact of European Central Bank liquidity support, resolution of the sovereign debt crisis within the Euro Area, and the ability of the European rescue fund to provide an effective firewall against contagion. 2012-06-29T19:05:39Z 2012-06-29T19:05:39Z 2012-06 http://documents.worldbank.org/curated/en/2012/06/16364130/bank-deleveraging-causes-channels-consequences-emerging-market-developing-countries http://hdl.handle.net/10986/9317 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research