The Impact of deposit dollarization on financial deepening

Eduardo Court, Emre Ozsoz, Erick Rengifo

Producción científica: Contribución a una revistaArtículorevisión exhaustiva

4 Citas (Scopus)

Resumen

Banks in highly dollarized economies face risks that significantly affect their ability to perform their financial intermediation role. In these economies, dollarization plays a dual role: on the one hand, it provides a hedging instrument protecting the value of savings; on the other hand, it generates a currency mismatch on banks' balance sheets and increases default risk. Through these effects deposit dollarization can affect credit extension. This paper investigates the role of deposit dollarization on the financial depth of forty-four emerging market economies. Findings suggest that deposit dollarization has a consistent and negative impact on financial deepening, except in high-inflation economies. © 2013 M.E. Sharpe, Inc. All rights reserved.
Idioma originalEspañol
Páginas (desde-hasta)39-52
Número de páginas14
PublicaciónEmerging Markets Finance and Trade
Volumen48
EstadoPublicada - 1 dic. 2012
Publicado de forma externa

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