01878cas a2200265 a 4500 AALejournalIMF018001 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484324769 1018-5941 BD-DhAAL BD-DhAAL Catao, Luis. International Financial Integration and Funding Risks : Bank-Level Evidence from Latin America / Luis Catao, Valeriya Dinger, Daniel Marcel te Kaat. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (42 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 Using a sample of over 700 banks in Latin America, we show that international financial liberalization lowers bank capital ratios and increases the shares of short-term funding. Following liberalization, large banks substitute interbank borrowing for equity and long-term funding, whereas small banks increase the proportions of retail funding in their liabilities, which have been particularly vulnerable to flight-to-quality during periods of financial distress in much of Latin America. We also find evidence that riskier bank funding in the aftermath of financial liberalizations is exacerbated by asymmetric information, which rises on geographical distance and the opacity of balance sheets. Mode of access: Internet Dinger, Valeriya. Marcel te Kaat, Daniel. IMF Working Papers; Working Paper ; No. 2017/224 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/224/001.2017.issue-224-en.xml IMF e-Library