Cross-border Financial Linkages PDF Download

Author: Bank for International Settlements. Monetary and Economic Department
Publisher:
ISBN: 9789291972791
Category :
Languages : en
Pages : 197

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Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498338801
Category : Business & Economics
Languages : en
Pages : 68

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Book Description
This paper maps cross-border financial linkages and identifies factors that drive them, contributing to the discussion on the appropriate design of a global financial safety net (GFSN). It builds on previous staff work and complements the findings of the companion paper on the Analytics of Systemic Crises and the Role of Global Financial Safety Nets. This paper notes the growing roles of financial linkages and complexity in injecting latent instability into the global financial system, underscoring the value of a GFSN design that is effective in forestalling the risk that a localized liquidity shock propagates through the global financial network turning into a large-scale systemic crisis.

Author: Mr.Seung M Choi
Publisher: International Monetary Fund
ISBN: 1484338731
Category : Business & Economics
Languages : en
Pages : 44

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Book Description
This paper examines whether the coordinated use of macroprudential policies can help lessen the incidence of banking crises. It is well-known that rapid domestic credit growth and house price growth positively influence the chances of a banking crisis. As well, a crisis in other countries with high trade and financial linkages raises the crisis probability. However, whether such “contagion effects” can operate to reduce crisis probabilities when highly linked countries execute macroprudential policies together has not been fully explored. A dataset documenting countries’ use of macroprudential tools suggests that a “coordinated” implementation of macroprudential policies across highly-linked countries can help to stem the risks of widespread banking crises, although this positive effect may take some time to materialize.

Author: Mr.Francesco Strobbe
Publisher: International Monetary Fund
ISBN: 1455209570
Category : Business & Economics
Languages : en
Pages : 56

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Book Description
We present a novel and comprehensive dataset of bilateral gross and net external positions in various financial instruments for the main advanced and emerging economies and regions, designed to improve our understanding of cross-border financial linkages. The data show no strong correspondence between country or region pairs with the largest gross versus net external positions, and the importance of international financial centers, including offshore centers, in intermediating financial flows. We also highlight some important data gaps in completing a network of cross-border holdings, related to the limited available information on the size and geographical pattern of external claims and liabilities of offshore centers, oil exporters, and other mostly emerging markets.

Author: Bank for International Settlements
Publisher:
ISBN:
Category :
Languages : en
Pages : 212

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Book Description
Ever more extensive global financial linkages are changing in ways that have significant implications for policy. Asia-Pacific countries have experienced a particularly rapid growth in financial flows since the crisis. Against this background, the BIS's Representative Office for Asia and the Pacific and the Reserve Bank of New Zealand (RBNZ) co-hosted a conference on cross-border financial linkages with a view to fostering research on implications of these important developments. The conference marked the completion of the BIS Asian Office's research programme in this area.The event brought together senior officials and researchers from central banks, international organisations and academia. Governor Graeme Wheeler of the Reserve Bank of New Zealand made the opening remarks. Papers presented at the conference covered patterns of cross-border linkages, foreign exchange markets and exchange rate risks, financial market spillovers in Asia-Pacific, and policies to deal with capital flows and their effectiveness. The volume comprises the opening speech and papers presented at the conference.While the full publication can be downloaded using the above link, individual contributions are available separately:'http://ssrn.com/abstract=2668678' Cross-border Portfolios: Assets, Liabilities, and Non-flow Adjustments'http://ssrn.com/abstract=2668667' Channels and Determinants of Foreign Bank Lending'http://ssrn.com/abstract=2668686' Development and Functioning of FX Markets in Asia and the Pacific'http://ssrn.com/abstract=2668709' Exchange Rates, Expected Returns and Risk: What Can We Learn from Asia-Pacific Currencies?'http://ssrn.com/abstract=2668692' The Influence of Chinese and US Financial Markets on Asia-Pacific'http://ssrn.com/abstract=2668717' Effectiveness of Macroprudential and Capital Flow Measures in Asia and the Pacific.

Author:
Publisher:
ISBN:
Category : Banks and banking, International
Languages : en
Pages : 0

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Book Description
"This paper maps cross-border financial linkages and identifies factors that drive them, contributing to the discussion on the appropriate design of a global financial safety net (GFSN). It builds on previous staff work and complements the findings of the companion paper on the Analytics of Systemic Crises and the Role of Global Financial Safety Nets. This paper notes the growing roles of financial linkages and complexity in injecting latent instability into the global financial system, underscoring the value of a GFSN design that is effective in forestalling the risk that a localized liquidity shock propagates through the global financial network turning into a large-scale systemic crisis."--Executive summary.

Author: Marco A Espinosa-Vega
Publisher: International Monetary Fund
ISBN: 1455200646
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
Effective cross-border financial surveillance requires the monitoring of direct and indirect systemic linkages. This paper illustrates how network analysis could make a significant contribution in this regard by simulating different credit and funding shocks to the banking systems of a number of selected countries. After that, we show that the inclusion of risk transfers could modify the risk profile of entire financial systems, and thus an enriched simulation algorithm able to account for risk transfers is proposed. Finally, we discuss how some of the limitations of our simulations are a reflection of existing information and data gaps, and thus view these shortcomings as a call to improve the collection and analysis of data on cross-border financial exposures.

Author: Takuji E. T. Al KINKYO
Publisher: World Scientific
ISBN: 9814713406
Category : Social Science
Languages : en
Pages : 232

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Book Description
"The purpose of this book is to empirically analyse the multifaceted nature of financial linkages in East Asia and to discuss the key policy challenges faced by the region's economies. Although the emphasis is placed on East Asia, some of the chapters cover a broader area of countries depending on the aim of the study. Particular areas of focus in these studies include: the evolution of cross-border financial linkages in East Asia; long-run economic consequences of remittance inflows and natural resource dependence; and policy priorities for the financial integration and management of resource-rich economies."--

Author: Franklin Allen
Publisher: CEPR
ISBN: 1907142363
Category : Banks and banking
Languages : en
Pages : 117

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Book Description
This report argues that policy reforms in micro- and macro-prudential regulation and macroeconomic policies are needed for Europe to reap the important diversification and efficiency benefits from cross-border banking, while reducing the risks stemming from large cross-border banks.Available online as pdf at: http: //www.cepr.org/pubs/books/CEPR/cross-border_banking.pd

Author: Chau Ho An Le
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Motivated by the global financial market turbulence in 2007-2011 and the gaps from the literature, this thesis presents an econometric assessment of different transmission mechanisms that propagated and amplified shocks from advanced economies to East Asia. The asset price channel is investigated with MS-VAR model and multivariate unconditional correlation tests. The recursive bivariate probit models are applied to test the liquidity shock transmission via the sudden stop in international lending. The second round effects are examined with partial adjustment models and system GMM estimation. The econometric procedure and testing approach bring about novel results from superior estimation techniques and handle several statistical problems such as heteroskedasticity, non-linearity, endogeneity, omitted variables, simultaneous equations and sample selection bias. The main finding of the thesis is that despite relatively sound fundamentals and limited exposure to structured credit products, East Asia could not totally decouple from the global financial crisis. Specifically, the asset price channels propagated volatility spillovers from the US and Europe to East Asian equity, foreign exchange and CDS markets. While international volatility spillovers were mainly caused by fundamental links, international behaviour during the shocks intensified the regional linkages and generated contagion effect. There was also contagion evidence associated with the sudden stop in international lending which facilitated the transmission of liquidity tensions in the interbank markets. Finally, contagion was magnified by the second round effects, defined as the feedback loops from the sudden changes in macro-financial conditions which caused adverse adjustment in bank performance. These findings have useful implications for international investors and policy authorities regarding to portfolio diversification and systematic risk containment.