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IMF Economic Review

, Volume 63, Issue 3, pp 479–495 | Cite as

International Banking and Liquidity Risk Transmission: Evidence from France

  • Matthieu Bussière
  • Boubacar Camara
  • François- Daniel Castellani
  • Vincent Potier
  • Julia Schmidt
Article

Abstract

The Banque de France contribution analyzes the effect of liquidity risk on domestic and foreign lending, credit and intragroup funding by French banking groups. The paper finds that a higher core deposit ratio, a higher commitment ratio, and a low ratio of illiquid assets are associated with higher growth of certain types of lending during times of liquidity risk. These effects are mitigated when public liquidity is accessed, thus confirming that public liquidity provision was conducive to maintaining lending growth. Most importantly, it finds that the quantitative importance of liquidity risk is more pronounced for foreign lending, which may suggest that the particular banking model of French banks and the strong domestic retail sector contributed to the stability of domestic credit.

JEL Classifications

F36 G21 

Supplementary material

41308_2015_BFimfer201524_MOESM1_ESM.zip (361 kb)
Supplementary material, approximately 369 KB.

References

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Copyright information

© International Monetary Fund 2015

Authors and Affiliations

  • Matthieu Bussière
  • Boubacar Camara
  • François- Daniel Castellani
  • Vincent Potier
  • Julia Schmidt

There are no affiliations available

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