• David Scharfstein
  • Jeremy Stein
  • Victoria Ivashina


Dollar Funding and the Lending Behavior of Global Banks. Jeremy Stein, Victoria Ivashina, David Scharfstein, November 2012, Paper. "A large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the shock leads to a greater withdrawal of dollar funding. Banks can borrow in euros and swap into dollars to make..." (May require user account or purchase) Link