Foreign Currency Bank Funding And Global Factors
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Author |
: Signe Krogstrup |
Publisher |
: International Monetary Fund |
Total Pages |
: 64 |
Release |
: 2018-05-09 |
ISBN-10 |
: 9781484353660 |
ISBN-13 |
: 1484353668 |
Rating |
: 4/5 (60 Downloads) |
Synopsis Foreign Currency Bank Funding and Global Factors by : Signe Krogstrup
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.
Author |
: Signe Krogstrup |
Publisher |
: International Monetary Fund |
Total Pages |
: 64 |
Release |
: 2018-05-09 |
ISBN-10 |
: 9781484355435 |
ISBN-13 |
: 1484355431 |
Rating |
: 4/5 (35 Downloads) |
Synopsis Foreign Currency Bank Funding and Global Factors by : Signe Krogstrup
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.
Author |
: International Monetary Fund. Statistics Dept. |
Publisher |
: International Monetary Fund |
Total Pages |
: 258 |
Release |
: 2015-01-07 |
ISBN-10 |
: 9781484350164 |
ISBN-13 |
: 1484350162 |
Rating |
: 4/5 (64 Downloads) |
Synopsis International Reserves and Foreign Currency Liquidity by : International Monetary Fund. Statistics Dept.
This update of the guidelines published in 2001 sets forth the underlying framework for the Reserves Data Template and provides operational advice for its use. The updated version also includes three new appendices aimed at assisting member countries in reporting the required data.
Author |
: Mr.Jack Ree |
Publisher |
: International Monetary Fund |
Total Pages |
: 29 |
Release |
: 2012-11-07 |
ISBN-10 |
: 9781475565171 |
ISBN-13 |
: 1475565178 |
Rating |
: 4/5 (71 Downloads) |
Synopsis FX Funding Risks and Exchange Rate Volatility–Korea’s Case by : Mr.Jack Ree
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.
Author |
: Mr.Eugenio M Cerutti |
Publisher |
: International Monetary Fund |
Total Pages |
: 36 |
Release |
: 2019-01-16 |
ISBN-10 |
: 9781484395219 |
ISBN-13 |
: 1484395212 |
Rating |
: 4/5 (19 Downloads) |
Synopsis Covered Interest Parity Deviations: Macrofinancial Determinants by : Mr.Eugenio M Cerutti
For about three decades until the Global Financial Crisis (GFC), Covered Interest Parity (CIP) appeared to hold quite closely—even as a broad macroeconomic relationship applying to daily or weekly data. Not only have CIP deviations significantly increased since the GFC, but potential macrofinancial drivers of the variation in CIP deviations have also become significant. The variation in CIP deviations seems to be associated with multiple factors, not only regulatory changes. Most of these do not display a uniform importance across currency pairs and time, and some are associated with possible temporary considerations (such as asynchronous monetary policy cycles).
Author |
: Iwan J. Azis |
Publisher |
: Springer |
Total Pages |
: 129 |
Release |
: 2014-12-11 |
ISBN-10 |
: 9789812872845 |
ISBN-13 |
: 9812872841 |
Rating |
: 4/5 (45 Downloads) |
Synopsis Managing Elevated Risk by : Iwan J. Azis
This book discusses the risks and opportunities that arise in Emerging Asia given the context of a new environment in global liquidity and capital flows. It elaborates on the need to ensure financial and overall economic stability in the region through improved financial regulation and other policy measures to minimize the emergent risks. "Managing Elevated Risk: Global Liquidity, Capital Flows, and Macroprudential Policy—An Asian Perspective" also explores the range of policy options that may be deployed to address the impact of global liquidity on domestic financial and socio-economic conditions including income inequality. The book is primarily aimed at policy makers, financial market regulators and supervisory agencies to help them improve national regulatory systems and to promote harmonization of national regulations and practices in line with global standards. Scholars and researchers will also gain important information and knowledge about the overall impacts of changing global liquidity from the book.
Author |
: International Monetary Fund. Monetary and Capital Markets Department |
Publisher |
: International Monetary Fund |
Total Pages |
: 109 |
Release |
: 2019-10-16 |
ISBN-10 |
: 9781498324021 |
ISBN-13 |
: 1498324029 |
Rating |
: 4/5 (21 Downloads) |
Synopsis Global Financial Stability Report, October 2019 by : International Monetary Fund. Monetary and Capital Markets Department
The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.
Author |
: International Monetary Fund |
Publisher |
: International Monetary Fund |
Total Pages |
: 92 |
Release |
: 2021-04-06 |
ISBN-10 |
: 9781513569673 |
ISBN-13 |
: 1513569678 |
Rating |
: 4/5 (73 Downloads) |
Synopsis Global Financial Stability Report, April 2021 by : International Monetary Fund
Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies. Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.
Author |
: Mr.George S. Tavlas |
Publisher |
: International Monetary Fund |
Total Pages |
: 61 |
Release |
: 1991-01-01 |
ISBN-10 |
: 9781451930993 |
ISBN-13 |
: 1451930992 |
Rating |
: 4/5 (93 Downloads) |
Synopsis The Japanese Yen as an International Currency by : Mr.George S. Tavlas
The role of the Japanese yen as an international currency is assessed. It is found that the determinants of international-currency use imply some increase for the yen’s use in international finance; however, the implications for the yen’s use in international trade are mixed. It is also shown that, despite Japan’s emergence as the world’s largest net creditor nation, Japan’s capital outflows have not significantly facilitated the yen’s internationalization. Data are presented showing that, although the yen’s use as an international currency has increased, it is still rather modest. Wider use of the yen as a regional currency in Asia has occurred, though a “yen-zone” does not appear to be emerging.
Author |
: Romain Lafarguette |
Publisher |
: International Monetary Fund |
Total Pages |
: 33 |
Release |
: 2021-02-12 |
ISBN-10 |
: 9781513569406 |
ISBN-13 |
: 1513569406 |
Rating |
: 4/5 (06 Downloads) |
Synopsis Foreign Exchange Intervention Rules for Central Banks: A Risk-based Framework by : Romain Lafarguette
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.