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Title: |
The Debt Crisis and International Loan Spreads |
| Author: |
Thornton, John |
| Author
Affiliation: |
U Wales, Bangor
and IMF |
| Source: |
International Economic Journal, Winter 1991, v. 5, no. 4, pp. 71-77 |
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Publication Date: |
Winter 1991 |
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Abstract: |
This note uses the hypothesis that there
are causal links between banks' lending decisions to test for contagion
in spreads charged on international syndicated loans over the period
1974:1 to 1989:4. Granger-causality results show little evidence of
spread contagion. The results suggest that banks are capable of
discriminating among groups of borrowers and are consistent with the
discrimination taking the form of credit rationing to particular groups
of borrowers and/or adjustments to spreads charged to particular groups
of borrowers. |
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