Global financial network and liquidity risk

John Inekwe, Yi Jin and Maria Rebecca Valenzuela
Additional contact information
Yi Jin: Southwestern University of Finance and Economics, Chengdu, China
Maria Rebecca Valenzuela: Department of Economics, Monash University, Melbourne, VIC, Australia

Australian Journal of Management, 2018, vol. 43, issue 4, 593-613

Abstract: This article investigates the impact of global financial integration on liquidity risk. Using the network approach and bank-level data for 95 countries, we find weak asymmetry in the relationship between net stable funding and financial connectedness. Our results suggest that the degree of connectedness between banks is inversely related to funding stability. We also find that banks that are strongly connected to important lenders take on more risks relative to those that have independent access to finance in the financial network. Our results are consistent and invariant when either internal or external instruments are used to resolve econometric issues. JEL Classification: F21, F34, F36, G15, G33

Keywords: Financial markets; financial networks; lending; liquidity risk (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0312896218766219 (text/html)

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:sae:ausman:v:43:y:2018:i:4:p:593-613

DOI: 10.1177/0312896218766219

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().