Did the global financial crisis lead to the breakdown of cross-border lending? An empirical analysis

Treball Final de Grau en Economia. Codi: EC1049. Curs acadèmic: 2020/2021This paper is an empirical analysis of cross-border lending. We examine their evolution from 1999 to 2018. We divide the years into three phases (1999-2006, 2007-2011, and 2013- 2018) to examine the impact of the global financial crisis on country credit relations. The work includes both Western and Eastern countries. After the analysis, we can see how more relations between Westerners are taking place. However, these credit relationships were reduced due to the 2007 crisis. Another of our findings is that the connection of banking institutions can collapse a whole set of countries. This is dangerous because if banks are too connected, the systemic risk increases and the imbalance can be transmitted to other sectors and areas. When examining the loans that the selected countries make to other countries, it highlights that Japan is the main lender. In contrast, the United States is the main borrower