摘要：This paper shows that global banks transmit liquidity
shocks via their network of foreign affiliates. We use the
(unexpected) access of German banks’ affiliates located in the
United States to the Federal Reserve’s Term Auction Facility.
We condition on the parent banks’ U.S. dollar funding needs
in order to examine how affiliates located outside the United
States adjusted their balance sheets when the U.S. affiliate of
the same parent tapped into TAF liquidity. Our research has
three main findings. First, affiliates tied to parents with higher
U.S. dollar funding needs expanded their foreign assets during
periods of active TAF borrowing. Second, the overall effects
are driven by affiliates located in financial centers. Third, U.S.-
dollar-denominated lending particularly increased in response
to the TAF program.
