Table 3: Regressions for transmission channels associated with foreign claims by EU and US banks in developing countries, 2004Q1–2011Q1<sup>_†_</sup>

||_S1_|_S2_|_S3_|_S4_|_S5_|_S6_|_S7_|_S8_|
|---|---|---|---|---|---|---|---|---|
|||_US _|_Banks_|||_EU _|_Banks_||
|Lagged foreign|0.600|0.600|0.600|0.599|0.752|0.751|0.751|0.751|
|claims|(0.04)<sup>_∗∗∗_</sup>|(0.04)<sup>_∗∗∗_</sup>|(0.04)<sup>_∗∗∗_</sup>|(0.04)<sup>_∗∗∗_</sup>|(0.03)<sup>_∗∗∗_</sup>|(0.03)<sup>_∗∗∗_</sup>|(0.03)<sup>_∗∗∗_</sup>|(0.03)<sup>_∗∗∗_</sup>|
|Libor-OIS/|-0.110|-0.080|-0.058|-0.073|0.042|0.072|0.072|0.072|
|Euribor-Eonia|(0.04)<sup>_∗∗∗_</sup>|(0.05)<sup>_∗_</sup>|(0.05)|(0.05)|(0.02)**|(0.03)***|(0.03)**|(0.03)**|
|Libor-OIS||-0.180|-0.196|-0.187|||||
|_×_ pre-Lehman||(0.20)|(0.19)|(0.19)|||||
|Libor-OIS||-0.153|||||||
|_×_ post-Lehman||(0.12)|||||||
|Euribor-Eonia||||||-0.014|-0.014|-0.014|
|_×_ pre-Vienna||||||(0.05)|(0.05)|(0.05)|
|Euribor-Eonia||||||-0.142|||
|_×_ post-Vienna||||||(0.05)<sup>_∗∗∗_</sup>|||
|US/EU bank CDS|0.066|0.056|0.046|0.053|-0.017|-0.031|-0.031|-0.031|
||(0.03)<sup>_∗∗_</sup>|(0.03)<sup>_∗∗_</sup>|(0.03)<sup>_∗_</sup>|(0.03)<sup>_∗∗_</sup>|(0.01)<sup>_∗_</sup>|(0.01)<sup>_∗∗∗_</sup>|(0.01)<sup>_∗∗_</sup>|(0.01)<sup>_∗∗_</sup>|
|US bank CDS||-0.340|-0.420|-0.364|||||
|_×_ pre-Lehman||(0.12)|(0.12)|(0.12)|||||
|US bank CDS|||1.101||||||
|_×_ post-Lehman|||(0.56)<sup>_∗_</sup>||||||
|EU bank CDS||||||0.098|0.098|0.098|
|_×_ pre-Vienna||||||(0.04)<sup>_∗∗_</sup>|(0.04)<sup>_∗∗∗_</sup>|(0.04)<sup>_∗∗_</sup>|
|EU bank CDS|||||||-0.706||
|_×_ post-Vienna|||||||(0.26)<sup>_∗∗∗_</sup>||
|Asset volatility|-0.003|0.114|0.191|0.137|-0.113|-0.134|-0.134|-0.134|
||(0.06)|(0.12)|(0.10)<sup>_∗_</sup>|(0.11)|(0.03)<sup>_∗∗∗_</sup>|(0.06)<sup>_∗∗_</sup>|(0.06)<sup>_∗∗_</sup>|(0.05)<sup>_∗∗_</sup>|
|Asset volatility||-0.340|-0.420|-0.364|||||
|_×_ pre-Lehman||(0.20)<sup>_∗_</sup>|(0.18)<sup>_∗∗_</sup>|(0.20)<sup>_∗_</sup>|||||
|Asset volatility||||-0.219|||||
|_×_ post-Lehman||||(0.14)|||||
|Asset volatility||||||-0.067|-0.067|-0.067|
|_×_pre-Vienna||||||(011)|(010)|(011)|
|<br>Asset volatility||||||.|.|.<br>-0.214|
|_×_ post-Vienna||||||||(0.07)<sup>_∗∗∗_</sup>|
|Loan demand,|-0.174|-0.140|-0.094|-0.131|0.159|0.219|0.219|0.219|
|US/EU banks|(0.12)|(0.12)|(0.12)|(0.14)|(0.06)<sup>_∗∗∗_</sup>|(0.08)<sup>_∗∗∗_</sup>|(0.08)<sup>_∗∗∗_</sup>|(0.09)<sup>_∗∗_</sup>|
|Infation|0.109|0.109|0.109|0.109|-0.025|-0.028|-0.028|-0.028|
||(0.01)<sup>_∗∗∗_</sup>|(0.20)|(0.25)|(0.22)|(0.00)<sup>_∗∗∗_</sup>|(0.10)|(0.10)|(0.12)|
|Growth|-0.237|-0.308|-0.267|-0.306|-0.404|-0.443|-0.443|-0.443|
||(0.40)|(0.51)|(0.44)|(0.51)|(0.20)<sup>_∗_</sup>|(0.26)<sup>_∗_</sup>|(0.26)<sup>_∗_</sup>|(0.27)|
|GDP|0.275|0.269|0.275|0.269|0.214|0.187|0.187|0.187|
||(0.09)<sup>_∗∗∗_</sup>|(0.09)<sup>_∗∗∗_</sup>|(0.10)<sup>_∗∗∗_</sup>|(0.10)<sup>_∗∗∗_</sup>|(0.04)<sup>_∗∗∗_</sup>|(0.05)<sup>_∗∗∗_</sup>|(0.05)<sup>_∗∗∗_</sup>|(0.05)<sup>_∗∗∗_</sup>|
|pre-Lehman|0.121|0.474|0.511|0.488|||||
||(0.06)<sup>_∗_</sup>|(0.45)|(0.43)|(0.43)|||||
|tLh|0153|0744|5969|0255|||||
|pos-eman|.<br>(0.10)|.<br>(0.48)|-.<br>(3.12)<sup>_∗_</sup>|.<br>(0.14)<sup>_∗_</sup>|||||
|pre-Vienna|||||0.085|-0.226|-0.226|-0.226|
||||||(0.03)<sup>_∗∗∗_</sup>|(0.18)|(0.17)|(0.17)|
|post-Vienna|||||0.044|0.651|3.842|0.229|
||||||(0.03)<sup>_∗_</sup>|(0.20)<sup>_∗∗∗_</sup>|(1.38)<sup>_∗∗∗_</sup>|(0.06)<sup>_∗∗∗_</sup>|
|Adj. _R_<sup>2</sup>|0.437|0.416|0.416|0.416|0.702|0.691|0.691|0.691|
|_R_<sup>2 </sup>(within)|0.439|0.439|0.440|0.440|0.703|0.704|0.704|0.704|
|Estimator|FE|FE|FE|FE|FE|FE|FE|FE|
|N|3,435|3,435|3,435|3,435|3,435|3,435|3,435|3,435|

> _†_ All variables are in log form. Heteroskedasticity and autocorrelation-robust standard errors are reported in parentheses. A constant term was included in the regressions, but not reported. Indicator variables for Lehman and Vienna separate the crisis variable at 2008Q4 and 2009Q1, respectively. _∗_ indicates significance at 10 percent level, _∗∗_ indicates significance at 5 percent level, and<sup>_∗∗∗_</sup> indicates significance at 1 percent level.

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