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cc-by-nc-nd (c) Elsevier B.V., 2024
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/218686

Vulnerable Funding in the Global Economy

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This study builds on the conceptual framework of vulnerable growth to examine how US financial shocks influence the conditional distribution of real credit growth across a diverse set of countries, a phenomenon we term vulnerable funding. We show that deteriorating US financial conditions are linked to a reduction in real credit growth abroad, with particularly pronounced effects at the lower quantiles of real credit growth abroad. This suggests that, in common with the episodes of vulnerable growth discussed in the extant literature, episodes of vulnerable funding are also triggered globally by financial weakness in the US. However, our analysis reveals significant variation in the impact of US financial shocks across the quantiles of credit growth in countries worldwide. Specifically, countries with lower credit-to-GDP ratios or with higher levels of US investment relative to their GDP exhibit greater real credit growth vulnerability.

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CHULIÁ SOLER, Helena, GARRÓN VEDIA, Ignacio, URIBE GIL, Jorge mario. Vulnerable Funding in the Global Economy. _Journal of Banking & Finance_. 2024. Vol. 169, núm. 1-9. [consulta: 8 de gener de 2026]. ISSN: 0378-4266. [Disponible a: https://hdl.handle.net/2445/218686]

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