International Bank Lending Research Articles

Liquidity, credit creation and international banking: An econometric investigation

For the past 18 months the Treasury and Civil Service Select Committee of the British House of Commons has been taking evidence from expert witnesses and interested parties concerning International Monetary Arrangements. An important concern of their work has been the inter-relationship between current problems in international bank lending and macroeconomic policies. Our presentation will review the opinions expressed in the Committee's Reports in the light of the econometric evidence we have obtained in our formal paper prepared for this conference. Basically we feel that the current problems facing the international banking system are in no small part due to the increased systematic risk introduced into the system by the macroeconomic policies followed by the industrial countries over the past decade, rather than simply to reckless and imprudent bank management. Further, our econometric evidence suggests that Eurocurrency flows may have a substantial effect on domestic liquidity, in contrast to the accepted view that such flows are unimportant. An underlying major theme of our paper concerns the importance of using modern econometric methods to shed light on current important problems of international financial interdependence.

The Less Developed Countries and the International Monetary System

Eleven recent books are surveyed in a review article which finds that there is still no up-to-date and comprehensive treatment of the interests and roles of the developing countries in the international monetary system. The rise of international commercial bank lending to developing countries has significantly altered the system by which balance-of-payments credit is offered. The International Monetary Fund has been relatively weakened, with especially serious implications for the poorest countries. Stabilization at both global and national levels has thus been impaired.

The Political Economics of International Bank Lending.

The Political Economics of International Bank Lending.

India: the Land of Unfulfilled Promise

THE CHANGING WORLD OF THE EXECUTIVE, by Peter Drucker THE INTERNATIONAL MONETARY ECONOMY AND THE THIRD WORLD, by George Macesich RESTRICTIVE BUSINESS PRACTICES, TRANSNATIONAL CORPORATIONS AND DEVELOPMENT: A SURVEY, by Frank Long THE POLITICAL ECONOMICS OF INTERNATIONAL BANK LENDING, by David Gisselquist DEVELOPING COUNTRIES IN A TURBULENT WORLD: PATTERNS OF ADJUSTMENT SINCE THE OIL CRISIS, by Ching‐yuan Lin IMPORT COMPETITION AND RESPONSE, edited by Jagdish N. Bhagwati THE PROMISE OF PEACE: ECONOMIC COOPERATION BETWEEN EGYPT AND ISRAEL, by Henry J. Bruton, Staff Paper NEW DEVELOPMENTS IN PRODUCTIVITY MEASUREMENT AND ANALYSIS, edited by John W. Kendrick and Beatrice N. Vaccara

Country risk, portfolio decisions and regulation in international bank lending

This paper examines the concept of ‘country risk’ and relates it to the construction of efficient loan portfolios in international banking. Applicability of conventional portfolio-theoretic concepts to the management of country lending exposure is examined, as are the requisites of country review systems for national exposure management. The issue of international banking regulation is assessed in this context, focusing on the dangers inherent in national and international regulatory initiatives for optimum global capital allocation.