BIS study uncovers credit crunch driven by geopolitics
Paper finds that lending recovers more slowly than trade following shock events
International trade recovers more quickly than credit flows in the wake of geopolitical shocks, a study by the Bank for International Settlements has found.
Using the BIS’s confidential banking statistics from 1977 to 2024, the working paper, published on March 20, analyses how geopolitics influences banking activity during periods of war and peace.
The authors – Lorenz Emter, Laura Kuitunen, Peter McQuade, Arnaud Mehl, Swapan Pradhan and Goetz von Peter – analyse bilateral credit dynamics
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