Leverage and cyclicality
Foreign bank credit to U.S. corporations: the implications of offshore loans
International financial transactions have grown in recent years far faster than has our ability to understand their significance for national economies. This article seeks to explain the rise in bank loans from banks outside the United States to U.S. businesses. The article looks at the implications of the rapid growth of such loans for issues ranging from the corporate debt buildup in the United States in the late 1980s to the loss of market share in U.S. commercial lending by U.S.-owned banks.
Financial consequences of new Asian surpluses
In brief economic capsules: Japanese banks' customers in the United States
Foreign banks in the United States are often thought to specialize in providing services to multinational firms from their home countries. This article examines data on Japanese bank loans and the liabilities of Japanese-owned firms to determine whether the increase in Japanese bank assets in the United States during the 1984-89 period can be attributed to growth in direct investment from Japan.
Distributional issues in privatization
Do banks follow their customers abroad?
The market share of U.S. business loans made by foreign-owned banks has increased dramatically since 1980. At the same time, foreign direct investment in the U.S. rose, so that much of the increase in foreign-owned U.S.-based bank lending to businesses in the U.S. could conceivably be accounted for by an increase in loans to the U.S. affiliates of firms headquartered abroad, an expectation in line with the conventional wisdom that bans "follow their customers" abroad. Our study investigates the lending patterns of U.S.-based banks from Japan, Canada, France, Germany, the Netherlands, and ...
Foreign banks, profits and commercial credit extension in the United States
This paper simultaneously models the determinants of foreign bank profitability and commercial credit extension in the United States between 11987 and 1991. Overall, the results indicate that supply-side factors such as capital strength, commercial and industrial loan growth, and assets composition were important factors in determining foreign banks' return-on-assets in the period under study. Capital strength stands out as being the most important factor influencing foreign bank return on shareholders equity. U.S. demand also appeared to be important in determining foreign bank performance ...
Leverage and cyclicality