Capital account liberalization and the composition of bank liabilities
آزاد سازی حساب سرمایه و ترکیب بدهی های بانکی-2021
Using a sample of almost 600 banks in Latin America, we show that capital account liberalization lowers the share of equity and raises the share of interbank funding in total liabilities of the banking system. These shifts are mostly due to large banks; smaller banks, instead, increase their resort to retail funding by offering higher average deposit interest rates than larger banks. We also find significant differences in the behavior of banks with seemingly greater information opacity. These findings have positive implications for macro-prudential regulation.
keywords: لیبرالیزاسیون حساب سرمایه | جریان سرمایه بین المللی | بودجه بانک و اهرم | Capital Account Liberalization | International Capital Flows | Bank Funding and Leverage
Do financial reforms promote entrepreneurship?
آیا اصلاحات مالی باعث تقویت کارآفرینی می شود؟-2020
This paper investigates whether financial reforms promote entrepreneurship. Using a panel of 41 developed and developing countries from around the world, we find that financial sector reforms are positively associated with early-stage entrepreneurial activity. In a variety of robustness checks, including a falsification test, we fail to find the evidence that this relationship is driven due to the omission of unobserved, country-specific factors. Investigating the relationship be- tween reforms in different dimensions of the financial sector and entrepreneurship, we find re- forms in directed credit, credit controls, banking supervision, and international capital flows dimensions to be significantly associated with early-stage entrepreneurial activity.
Keywords: Entrepreneurship | Banks | Financial sector reforms | Liberalization | Financial sector regulation
The impact of financial development, IFRS, and rule of LAW on foreign investments: A cross-country analysis
تأثیر توسعه مالی ، IFRS و قاعده قانون در سرمایه گذاری های خارجی: یک تحلیل متقابل کشور-2020
Financial development, which refers to an improvement in financial structure, plays an important role in exchanging of goods and services; enables efficient allocation of economic resources among alternative uses; monitors managers effectively; exerts corporate control, and stimulates international capital flows (Cihak, et al., 2012; Goldsmith, 1969; Levine, 1997; Sahay, et al., 2015).1 According to Calderón and Liu (2003), financial development is defined as an improvement in quantity, quality, and efficiency of financial intermediary services. It is a generic, multifaceted phenomenon measured by a variety of indicators including market capitalization, the ratio of market capitalization to GDP, the ratio of value of stocks traded to GDP, stocks traded turnover ratio, and domestic credits provided by banking sector (Bascom, 1994, p. 3; Levine, 2002; Pagano, 1993).
Uncertainty and cross-border banking flows
عدم قطعیت و جریان بانکی بین مرزی-2019
While global uncertainty—measured by the VIX—has proven to be a robust global ‘‘push” factor of international capital flows, there has been no systematic study assessing the role of uncertainty in driving bilateral capital flows. This paper examines the effects of higher country-specific uncertainty on cross-border banking flows using data from the Bank for International Settlements Locational Banking Statistics. The bilateral structure of this data allows disentangling supply factors from demand factors, thereby helping identify the effect of higher uncertainty on cross-border banking flows from other confounding factors. The results of this analysis suggest that: (i) uncertainty in a source country (domestic economy) is both a lender-specific push and pull factor that robustly predicts a decrease in outflows (cross-border lending) and inflows (cross-border borrowing); (ii) the decline in crossborder borrowing is larger than the decline in cross-border lending—that is, the net crossborder position of the banking sector increases; (iii) despite a decline in cross-border bank lending in the absolute sense, the share of cross-border bank lending in total bank lending increases, suggesting a portfolio rebalancing; (iv) this rebalancing occurs only when banks are lending to borrowers in advanced economies, but not to those in emerging market economies
Keywords: Uncertainty | Cross-border banking flows | Stops | Retrenchment | Portfolio rebalancing | Flight-to-safety
Macroprudential policies, capital flows, and the structure of the banking sector
سیاستهای مقتدرانه ، جریان سرمایه و ساختار بخش بانکی-2017
Using a large sample of advanced and emerging market economies over the period 1999–2012, we examine the effectiveness of macroprudential policies (MPPs) in managing cross-border bank flows. Conditioning on the structure of the banking sector in the MPP-implementing country, we find that higher regulatory quality and a higher credit to-deposit ratio increase the effectiveness of MPPs, while a higher cost-to-income ratio has the opposite effect. If all three financial variables are evaluated at the median, the mar ginal effect of our preferred MPP measure leads to a reduction of international bank inflows in percent of GDP by around half a percentage point and is only marginally significant. However, when the more enhanced 25th (10th) percentiles of their respective distributions are considered, we observe, as a response to the same MPP measure, a reduction of bank inflows by 3.44 (5.39) percentage points that is highly statistically and economically signif icant. Additionally, we find that the structure of the domestic banking sector determines spillovers from MPPs across asset classes, while spillovers from MPPs across countries are a function of banking sector conditions both at home and abroad.
Keywords: Macroprudential policies | International capital flows | Banking sector