Drivers of global liquidity and global bank flows: A view from the euro area
Mary Everett ()
No 168, FIW Working Paper series from FIW
Abstract:
This paper exploits a novel bank-level monthly dataset to assess the effects of global liquidity on the global flows of euro area banks. The period associated with the European sovereign debt crisis has witnessed increased growth in euro area bank claims on extra-euro area residents, against a background of contracting euro area credit supply. Controlling for bank risk, global credit demand, and price effects such as interest rate differentials and exchange rates, empirical evidence supports a range of determinants of global liquidity - including global risk, global bank equity and unconventional monetary policy in the US, UK, Japan and euro area - as drivers of the global flows of euro area banks. Moreover, regression analysis indicates heterogeneity in the influence of global liquidity on global flows across euro area bank type, defined by their balance sheet composition and country of residence (stressed versus non-stressed euro area countries). The results highlight the importance of exogenous factors as drivers of global bank flows and the potential for international leakages of unconventional monetary policy.
Keywords: Global bank flows; cross-border banking; global risk; global liquidity; European sovereign crisis; unconventional monetary policy spillovers; credit supply (search for similar items in EconPapers)
JEL-codes: F60 G15 G21 (search for similar items in EconPapers)
Pages: 40
Date: 2016-03
New Economics Papers: this item is included in nep-ban, nep-eec and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://www.fiw.ac.at/fileadmin/Documents/Publikati ... er/N_168_Everett.pdf full text
none
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2016:i:168
Ordering information: This working paper can be ordered from
FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna
Access Statistics for this paper
More papers in FIW Working Paper series from FIW
Bibliographic data for series maintained by ().