Matias Ossandon Busch

Focus This paper uncovers a novel channel of cross-border financing: long-term loans from foreign firms that resemble bank credit, not trade credit. Using rich firm-level data from Colombia for the Q1 2016–Q4 2019 period, it shows how these loans helped exporters expand during US–China trade tensions, stepping in where foreign banks were slower to respond. Unlike banks, foreign firms have more flexibility to act during uncertainty, using commercial ties and with fewer regulatory constraints.

Focus Recent episodes of financial distress have highlighted fragilities associated with wholesale deposits. In the absence of runs, non-bank financial intermediaries (NBFIs) seek to roll over wholesale deposits. However, they lack a credible liquidity backstop to prevent runs, creating a source of liquidity risk. We examine how liquidity risk stemming from wholesale deposits affects banks' credit supply and maturity transformation.