02079cas a2200277 a 4500 AALejournalIMF013534 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484363737 1018-5941 BD-DhAAL BD-DhAAL Jain-Chandra, Sonali. The Impact of Foreign Bank Deleveraging on Korea / Sonali Jain-Chandra, Min Jung Kim, Sung Ho Park, Jerome Shin. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Korea was hit hard by the 2008 global financial crisis, with the foreign bank deleveraging channel coming prominently into play. The global financial crisis demonstrated that a sharp deleveraging can be transmitted to emerging markets through the bank lending channel to a slowdown in credit growth. The analysis finds that a sharp decline in external funding led to relatively modest decline in domestic credit by Korean banks, due to concerted policy efforts by the government in 2008. Impulse responses from a Dynamic Stochastic General Equilibrium (DSGE) model calibrated to Korea shows that it appears better prepared to handle such shocks relative to 2008. Indeed, Korea is much more resilient to such shocks due to the efforts by the authorities, which has led to the strengthening of external buffers, such as higher foreign exchange reserves and bilateral and multilateral currency swap arrangements. Mode of access: Internet Kim, Min Jung. Park, Sung Ho. Shin, Jerome. IMF Working Papers; Working Paper ; No. 2013/101 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/101/001.2013.issue-101-en.xml IMF e-Library