Foreign Currency Bank Funding and Global Factors /

The literature on the drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial intermed...

Повний опис

Бібліографічні деталі
Автор: Krogstrup, Signe
Інші автори: Tille, Cedric
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2018.
Серія:IMF Working Papers; Working Paper ; No. 2018/097
Онлайн доступ:Full text available on IMF
Опис
Резюме:The literature on the drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial intermediaries' funding flows in different currencies. A concise portfolio model shows that the sign and magnitude of the response of foreign currency funding flows to global risk factors depend on the financial intermediary's pre-existing currency exposure. An analysis of a rich dataset of European banks' aggregate balance sheets lends support to the model predictions, especially in countries outside the euro area.
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Фізичний опис:1 online resource (64 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students