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작성일
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2022.12.22
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수정일
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2022.12.22
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작성자
임현지
- 조회수
- 585
2022-2, "International Liquidity Shock and Bank Resilience: Evidence from Matched Bank-Firm Data"
Author
Youngju Kim (Bank of Korea. Email: econoky@bok.or.kr)
Hyunjoon Lim (Bank of Korea. Email: limhj1@bok.or.kr)
Youngjin Yun (Corresponding author; Inha University. Email: yyunphd@gmail.com)
Abstract
Banks are the first line of defense against the propagation of adverse external shocks. This study examines the role of banks in the transmission of international liquidity shock using matched bank-firm data for Korea over the 2006-2015 period. We measure individual banks’ sensitivity to international shocks by analyzing their foreign exchange (FX) borrowing rates. The bank from which a firm borrows matters in times of FX liquidity shocks. We find that sensitive banks reduce FX credit supply to firms and that FX loan-reliant, highly productive firms subsequently reduce their investment. Foreign banks are affected less by the shocks, but they reduce credit supply more than domestic banks. Our findings emphasize the importance of bank resilience vis-a-vis external and domestic stability.