Cover; Contents; Abstract; I. Introduction; II. Methodology and Data; A. The Bond Market; B. The Interbank Market; III. Results; A. The Bond Market; B. The Interbank Market; IV. Robustness Analysis; A. The Bond Market; B. The Interbank Market; V. Concluding Remarks; References; Tables; 1. Bond Market Spread; 2. Interbank Market Spread; 3. Bond Market Spread -- Robustness; 4. Interbank Market Spread -- Robustness; Figures; 1. Stylized Facts, 2008-12; 2. Funding Markets, 2008-12
Summary
This paper quantifies financial spillovers from global risk factors to banks' funding costs in Chile. It decomposes Chilean banks' bond and interbank spreads into domestic and external factors. The results suggest moderate spillovers. On average, global spillovers pushed up bank bond and interbank spreads in Chile by about 50 basis points in 2008-12. While in 2008-09, most spillovers originated in the U.S., in mid-2010 onwards, European distress played a prominent role
Notes
Title from PDF title page (IMF Web site, viewed Oct. 31, 2012)