TY - BOOK ID - 84540715 TI - Determinants of Dollarization : The Banking Side AU - Terrones, Marco. AU - Catão, Luis. PY - 2000 SN - 1462304478 1452768374 1282107518 9786613800862 1451901747 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Money and Monetary Policy KW - Industries: Financial Services KW - Interest Rates: Determination, Term Structure, and Effects KW - Financial Markets and the Macroeconomy KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Financing Policy KW - Financial Risk and Risk Management KW - Capital and Ownership Structure KW - Value of Firms KW - Goodwill KW - Monetary economics KW - Finance KW - Banking KW - Financial services law & regulation KW - Dollarization KW - Currencies KW - Loans KW - Bank credit KW - Monetary policy KW - Money KW - Financial institutions KW - Exchange rate risk KW - Financial regulation and supervision KW - Banks and banking KW - Credit KW - Financial risk management KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540715 AB - Dollarization in financial intermediation has exhibited a widely diverse pattern across countries. Empirical work relating it to macroeconomic variables has had only limited success in explaining the phenomenon. This paper presents a two-currency banking model to show that deposit and loan dollarization are determined by a broader set of factors. These include interest rates and exchange rate risk, as well as structural factors related to costly banking, credit market imperfections, and availability of tradable collateral. The direction in which dollarization tends to move with macroeconomic shocks is shown to depend on those factors as well as on initial dollarization levels. ER -