Corporate savings, investment and financial structure in East Asia: Micro-evidence

Jenny Corbett, Garry Twite

    Research output: Chapter in Book/Report/Conference proceedingChapter


    This chapter presents a number of stylized facts on the relevant cross-border lending. It extends limited works on the cross-border lending to East Asian economies, such as Siregar and Choy, by focussing on the periods before and after the sub-prime financial crisis. Prior to the latest financial crisis, the primary mandate for most central banks in Asia was monetary policy stability in particular, price stability. The chapter examines the role of international bank claims, in particular, cross-border lending, as a critical channel of transmission of worldwide financial shocks to local economies. The increasing interconnectedness of domestic banking liquidity to the global funding environment enhances the links between domestic financial stability and external shocks. The exposure and home country fundamental variables have been found to be significant factors, and confirmed the role of international bank lending as a channel of shock transmission from home countries to host economies.
    Original languageEnglish
    Title of host publicationRebalancing Economies in Financially Integrating East Asia
    Editors Jenny Corbett and Ying Xu
    Place of PublicationAbingdon and New York
    PublisherRoutledge Taylor & Francis Group
    ISBN (Print)9780415859363
    Publication statusPublished - 2015


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