Foreign Lending Exposure
U.S. banks’ loans to developing countries have not yet returned to their early-1997 levels, probably because of these countries’ economic weakness as well as more favorable prospects for economic growth elsewhere. Many analysts view developing countries’ financial fragility as the main cause of the 1997–98 crises, but several studies have suggested that interest rate changes in developed countries also played a role.
Suggested citation: "Foreign Lending Exposure," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-08, pp. 18, 08.01.2000.