IMF Economic Review

, Volume 63, Issue 3, pp 455–478 | Cite as

International Banking and Liquidity Risk Transmission: Evidence from Canada

  • James Chapman
  • Halil Evren Damar


This paper investigates how liquidity conditions in Canada may affect domestic and/or foreign lending of globally active Canadian banks, and whether this transmission is influenced by individual bank characteristics. It finds that Canadian banks expanded their foreign lending during the recent financial crisis, often through acquisitions of foreign banks. It also finds evidence that internal capital markets play a role in the lending activities of globally active Canadian banks during times of heightened liquidity risk.

JEL Classifications

E44 F36 G21 G32 

Supplementary material (141 kb)
Supplementary material, approximately 144 KB.


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Copyright information

© International Monetary Fund 2015

Authors and Affiliations

  • James Chapman
  • Halil Evren Damar

There are no affiliations available

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