FES International Research Seminar Series with Galina Hale, Research Advisor, Federal Reserve Bank of San Francisco, PhD in Economics, UC Berkeley.

Our next speaker in the FESl International Research Seminar Series is Galina Hale, who is a Research Advisor (Federal Reserve Bank of San Francisco) and PhD in Economics (UC Berkeley).                                                                 

 Speaker: Galina Hale, Federal Reserve Bank of San Francisco                                                                                                                                                                                                                   Title: Shock Transmission through Cross-Border Bank Lending: Credit and Real Effects
                                                                                                                                                                  
 The abstract: We study the transmission of financial shocks across borders through international bank connections. Using data on cross-border interbank loans among 6,000 banks during 1997-2012, we estimate the effect of banks’ direct and indirect exposures to banks in countries experiencing systemic banking crises (“crisis exposures”) on profitability, credit, and the performance of borrower firms. We show that direct crisis exposures reduce bank returns and tighten credit conditions through lower loan volumes and higher rates on new loans. Indirect crisis exposures amplify these effects. Crisis exposures reduce firm growth and investment even in countries not experiencing banking crises themselves, thus transmitting shocks across borders.

 Time: 12:10-13:40

 Venue: Shabolovka campus, room 3211

 FES Seminars webpage: https://economics.hse.ru/en/seminars/ 

 For external participants: to order the pass, please contact Disa Malbakhova dmalbakhova@hse.ru