---
title: Bank Dollarization, Lending Behavior and Real Effects
url: https://www.ml-quant.com/papers/repec/tcb-wpaper-2617/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-02
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:tcb:wpaper:2617
source_url: https://econpapers.repec.org/RePEc:tcb:wpaper:2617
featured: 2026-10-02
citations: unknown
topic: Risk, Credit & Banking
---


# Bank Dollarization, Lending Behavior and Real Effects

The study shows that banks with high foreign exchange risk reduce lending to both exposed and unexposed firms after exchange rate shocks, with measurable real effects on small and medium enterprises.

- Source: https://econpapers.repec.org/RePEc:tcb:wpaper:2617
- Identifier: RePEc:tcb:wpaper:2617
- Released: 2026-09-28
- First featured: Quant Letter No. 133 (2026-10-02): https://www.ml-quant.com/issues/2026-10-02/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Burak Deniz, Tarik Alperen Er, Ibrahim Yarba

## Related

- [Impact of Central Bank Digital Currencies on Financial Stability](https://www.ml-quant.com/papers/ssrn/7540719/): Calibrated simulations show existing central bank digital currencies remain below thresholds needed to measurably affect bank credit or financial stability.
- [Global Factors in Non-core Bank Funding and Exchange Rate Flexibility](https://www.ml-quant.com/papers/arxiv/2310.11552/): The proportion of non-core to core funding in advanced economies' banking systems is influenced by global factors, with exchange rate flexibility providing some protection, except during significant global financial crises.
- [Asset Prices, Collateral and Bank Lending: The Case of COVID-19 and Real Estate](https://www.ml-quant.com/papers/ssrn/4470421/): The paper investigates the euro area's banking system's role in transmitting asset price shocks to credit during the Covid-19 crisis, highlighting significant frictions and a decrease in lending related to real estate collateral.
- [Financial Fragilities and Risk-taking of Corporate Bond Funds in the Aftermath of Central Bank Policy Interventions](https://www.ml-quant.com/papers/ssrn/4463970/): It finds that central bank asset purchases during the pandemic led corporate bond fund managers to take more risks, affecting market stability.
- [Financial Instruments for Decarbonization: Likely Pathways for the Romanian Economy](https://www.ml-quant.com/papers/ssrn/4440511/): The study highlights key financial tools in Romania, like green bonds and loans, which can help transition to a low-carbon economy, with banks playing a major role.
- [Centered‐Innovation MA for Bayesian Dirichlet ARMA: Theoretical Equivalence and an Application to Bank‐Asset Shares](https://www.ml-quant.com/papers/arxiv/2510.18903/): We remove bias in Dirichlet compositional time series by centering MA innovations using digamma adjustments, yielding unbiased MA terms, better forecasts, and cleaner MCMC diagnostics.
