Mapping the Shadow Banking System Through a Global Flow of Funds Analysis

Luca Errico, Artak Harutyunyan, Elena Loukoianova (), Richard Walton, Yevgeniya Korniyenko, Hanan AbuShanab and Hyun Song Shin

No 2014/010, IMF Working Papers from International Monetary Fund

Abstract: This paper presents an approach to understanding the shadow banking system in the United States using a new Global Flow of Funds (GFF) conceptual framework developed by the IMF’s Statistics Department (STA). The GFF uses external stock and flow matrices to map claims between sector-location pairs. Our findings highlight the large positions and gross flows of the U.S. banking sector (ODCs) and its interconnectedness with the banking sectors in the Euro area and the United Kingdom. European counterparties are large holders of U.S. other financial corporations (OFCs) debt securities. We explore the relationship between credit to domestic entities and the growth of non-core liabilities. We find that external debt liabilities of the financial sector are procyclical and are closely aligned with domestic credit growth.

Keywords: WP; banking system; bank; shadow banking system; Shadow Banking; Global Flow of Funds; Financial Stability; Data Gaps; financial asset; securities liability; subprime mortgage; broker dealer sector; IMF surveillance; banking sector asset; Ofc debt security category; lending boom; offices in the United States; banking sector balance sheet; Commercial banks; Securities; Capital flows; Financial statements; Global (search for similar items in EconPapers)
Pages: 57
Date: 2014-01-24
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Citations: View citations in EconPapers (18)

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