Foreign?funded credit: Funding the credit cycle?

This study investigates what drives the credit cycle, focusing on role of foreign-funded bank (FFC). Considering cycles in 41 countries over period 1985–2015, this finds that booms are associated with an increase share FFC economy. especially holds for emerging economies and provided to nonfinancial corporations. The increased needs during a boom may cause substitution domestically funded by FFC, as growth is less restricted than credit, such domestic deposit base.