This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2) LDC policies designed to enhance creditworthiness; (3) prevalence of short maturities on international...

Most community banks have been unable to increase dramatically the percentage of their revenue coming from non-traditional sources and so remain reliant on the net income generated by traditional intermediation activities. This continued dependence means that the lending strategy chosen by any community bank is a key determinant of its survival. In this study the lending strategies chosen by a ...

This paper provides novel empirical evidence on the effect of dislocations in FX swap markets (‘CIP deviations’) bank lending. Using balance sheet data from UK banks we show that when cost obtaining swap-based funds a particular foreign currency increases, reduce supply cross-border credit currency. is increasing degree banks’ reliance funding. Notably, high access to alternative funding source...