Foreign Currency Bank Funding and Global Factors - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign Currency Bank Funding and Global Factors write by Signe Krogstrup. This book was released on 2018-05-09. Foreign Currency Bank Funding and Global Factors available in PDF, EPUB and Kindle. 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.
Capital Flows: The Role of Bank and Nonbank Balance Sheets
Capital Flows: The Role of Bank and Nonbank Balance Sheets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows: The Role of Bank and Nonbank Balance Sheets write by Ms.Yuko Hashimoto. This book was released on 2019-04-29. Capital Flows: The Role of Bank and Nonbank Balance Sheets available in PDF, EPUB and Kindle. This paper assesses the role of bank and nonbank financial institutions’ balance sheet foreign exposures and risk management practices in driving capital flow responses to global risk. Using a unique and previously unexplored dataset on domestic and cross border balance sheet positions of financial institutions collected by the IMF, we show that the response of overall capital flows to global risk shocks is associated with the on-balance sheet foreign exposures of nonbanks, but not with that of banks. A possible interpretation is that risk-averse and dynamically optimizing nonbanks reduce their foreign risk exposure when global risk perceptions increase, leading to capital flows, while banks tend to be hedged against these risks off balance sheet. In advanced countries, the findings suggest that nonbank portfolio adjustment to changing risk conditions may take place through derivatives transactions with banks, the hedging practices of which trigger bank related capital flows rather than portfolio flows.
FX Funding Risks and Exchange Rate Volatility–Korea’s Case
FX Funding Risks and Exchange Rate Volatility–Korea’s Case - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook FX Funding Risks and Exchange Rate Volatility–Korea’s Case write by Mr. Jack Ree. This book was released on 2012-11-07. FX Funding Risks and Exchange Rate Volatility–Korea’s Case available in PDF, EPUB and Kindle. This paper examines how exchange rate volatility and Korean banks’ foreign exchange liquidity mismatches interacted with each other during the Global Financial Crisis, and whether the vulnerability stemming from this interaction has been reduced since then. Structural and cyclical changes after the crisis, including decreasing demand for currency hedges and the diversifying investor base for bonds, point to a possible weakening of the interaction mechanism; and we find evidences are strongly supportive of this.
Foreign Currency Bank Funding and Global Factors
Foreign Currency Bank Funding and Global Factors - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Foreign Currency Bank Funding and Global Factors write by Signe Krogstrup. This book was released on 2018-05-09. Foreign Currency Bank Funding and Global Factors available in PDF, EPUB and Kindle. 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.
The Multilateral Aspects of Policies Affecting Capital Flows
The Multilateral Aspects of Policies Affecting Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Multilateral Aspects of Policies Affecting Capital Flows write by International Monetary Fund. Monetary and Capital Markets Department. This book was released on 2011-10-13. The Multilateral Aspects of Policies Affecting Capital Flows available in PDF, EPUB and Kindle. The crisis is prompting a reconsideration of capital flows and the policies that affect them. A breakdown in the domestic stability of a large country can spill over into stress in other countries and even to the global system as a whole. The activities of global institutions and markets—some regulated and some not—can bear on the riskiness of flows. Thus, national policies affecting capital flows can transmit multilaterally. This transmission has not been fully appreciated by national policymakers. Further, they may not have incentives to take full account of the cross-border effects of their policies. Looking ahead, the upward trend in the volume of capital flows can be expected to continue, making it ever more important to address the associated cross-border risks. This paper aims to draw greater attention to the multilateral aspects of policies affecting capital flows. Previous work by the Fund has focused on the policies of recipient countries, mainly emerging market economies (EMEs), and addressed the circumstances in which capital flow management measures (CFMs) would be appropriate. This paper provides a complementary assessment of regulatory and supervisory policies of advanced economies, as well as large advanced economy monetary policy. Moreover, it addresses the multilateral transmission of CFMs.
