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Persistent link: https://www.econbiz.de/10012238278
bank-level dataset to assess at a quarterly frequency how changes in the U.S. Federal funds rate (before the crisis) and … the existence of a potent global bank lending channel. In response to changes in U.S. monetary conditions, U.S. banks … strongly adjust their cross-border claims in both the pre and post-crisis period. However, we also find that U.S. bank …
Persistent link: https://www.econbiz.de/10011336667
Existing literature has identified domestic restrictive monetary policy and deteriorating funding conditions as the predominant factors explaining the increase in net interoffice accounts of global banks, that is, the net liabilities of parent offices due to their related foreign offices. The...
Persistent link: https://www.econbiz.de/10011312233
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International financial linkages, particularly through global bank flows, generate important questions about the …. Empirical tests of the trilemma support this view that global bank effects are heterogeneous and that the primary drivers of …
Persistent link: https://www.econbiz.de/10010201279
We develop a two-country DSGE model with global banks to analyze the role of crossborder banking flows on the transmission of a quality of capital shock in the United States to emerging market economies (EMEs). Banks face a moral hazard problem for borrowing from households. EME's banks might be...
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This paper explores the basic question of whose monetary policy matters for banks' international lending. In the international context, monetary policies from several countries could come into play: the lender's, the borrower's, and that of a third country, the issuer of the currency in which...
Persistent link: https://www.econbiz.de/10012890516
We investigate global factors associated with bank capital flows. We formulate a model of the international banking … system where global banks interact with local banks. The solution highlights the bank leverage cycle as the determinant of …
Persistent link: https://www.econbiz.de/10013047533