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How Does Global Liquidity Affect Mortgage and Business Credit Interest Rates?: Evidence From Emerging Markets

Berrak Bahadir & Neven T. Valev

International Finance2026https://doi.org/10.1111/infi.70026article
ABDC B
Weight
0.50

Abstract

We show that changes in global liquidity have an influence on bank lending interest rates across emerging market economies. Specifically, global liquidity has a negative effect on mortgage interest rates and on business interest rates with mortgage rates showing a more pronounced response. Country characteristics also play a role. The negative relationship between global liquidity and domestic interest rates is particularly strong in countries with more foreign banks and greater bank concentration as well as in countries with fewer capital controls. Conversely, countries with greater financial and institutional development experience a reduced impact of global liquidity on lending interest rates.

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https://doi.org/https://doi.org/10.1111/infi.70026

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@article{berrak2026,
  title        = {{How Does Global Liquidity Affect Mortgage and Business Credit Interest Rates?: Evidence From Emerging Markets}},
  author       = {Berrak Bahadir & Neven T. Valev},
  journal      = {International Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/infi.70026},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.