Siirry sisältöön
  • Add to calendar
    Bank of Finland, Rauhankatu 19 B, Helsinki 

Andriy Tsapin (National Bank of Ukraine): Shock Contagion, Asset Quality and Lending Behaviour

Co-authors: Tho Pham (Swansea University) and Oleksandr Talavera (Swansea University) 

Abstract
We use the geopolitical conflict in eastern Ukraine as a negative shock to bank assets and examine the shock’s impact on the banking sector. We find banks were more severely affected by the conflict if they had more loans outstanding in the conflict areas before the shock. These banks, consequently, are more likely to experience an increase in troubled assets and a reduction in credit supply. Further analysis offers evidence of the “flight to headquarters” effect in credit allocation wherein more affected banks cut lending by a greater amount in markets located farther from headquarters.

https://bank.gov.ua/doccatalog/document?id=62899125


BOFIT seminars are open to all researchers interested in the subjects covered.Those wishing to attend a seminar are kindly asked to register in advance, by email bofit(at)bof.fi or tel. +358 9 183 2268.

Seminars take place, as a rule, on Tuesdays, starting at 10.30 a.m.  Visitors are escorted to the seminar room from the Rauhankatu 19 B (Library) entrance.