Discussion Paper

Will Capital Flows through Global Banks Support Economic Recovery?

Abstract: While policymakers around the world have aggressively and swiftly reacted to the common negative economic shock from COVID-19, the timing and forms of policy responses in the economic recovery stage may be more geographically differentiated. The range in policy responses, along with variations in the financial health of banks, likely will affect the flow of international credit through global banks. In this post, we ask whether, based on historical precedent, global banks are likely to provide additional support to the economic recovery in the locations they serve.

Keywords: global banks; international capital flows; COVID-19; recovery; spillovers;

JEL Classification: G21; I1; E51; I15; F3;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2021-03-01

Number: 20210301