Skip to main content

A closer look at EMs’ exposure to bank flows

A key channel through which emerging markets could be affected by the strains in the global banking sector is if lending by foreign banks falls sharply. On this front, EMs’ vulnerabilities have eased since the Global Financial Crisis. But there are still areas of concern, particularly in countries that are reliant on banking sector flows to finance large current account deficits. That includes parts of Eastern Europe (particularly Turkey) and Latin America (Chile, Colombia). Risks in Asia look much more contained.

In view of the wider interest, we are sending this update to clients of all our emerging markets services.

Drop-In (Today at 11:00 ET/15:00 GMT): Join this post-ECB briefing on how central banks will balance financial stability concerns following recent banking sector turmoil with the need to contain inflation. Join Now.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access