TY - BOOK ID - 138377806 TI - Foreign Bank Behavior during Financial Crises AU - Adams-Kane, Jonathon AU - Caballero, Julian A. AU - Lim, Jamus Jerome PY - 2013 PB - Washington, D.C., The World Bank, DB - UniCat KW - Access to Finance KW - Bank lending KW - Bankruptcy and Resolution of Financial Distress KW - Banks & Banking Reform KW - Debt Markets KW - Financial crisis KW - Financial Crisis Management & Restructuring KW - Foreign bank ownership KW - Macroeconomics and Economic Growth UR - https://www.unicat.be/uniCat?func=search&query=sysid:138377806 AB - One of the persistent policy problems faced by governments contemplating financial liberalizations is the question of whether to allow foreign banks entry into the domestic economy. This question has become ever more urgent in recent times, due to rapid financial globalization, coupled with the credit contractions experienced as a result of the 2007/08 financial crisis. This paper examines the question of whether opening the financial sector to foreign participation is a good idea for developing countries, using a unique bank-level database of foreign ownership. In particular, the authors examine whether the credit supply of majority foreign-owned financial institutions differ systematically conditional on a crisis event in their home economies. They show that foreign banks that were exposed to crises in their home countries exhibit changes in lending patterns that are lower by between 13 and 42 percent than their non-crisis counterparts. ER -