Currency-based measures targeting banks - Balancing national regulation of risk and financial openness

Annamaria de Crescenzio, Marta Golin and Anne-Christelle Ott
Additional contact information
Annamaria de Crescenzio: OECD

No 2015/3, OECD Working Papers on International Investment from OECD Publishing

Abstract: This paper presents and analyses new datasets of de jure Currency-Based Measures (CBMs) directed at banks in a sample of 49 countries between 2005 and 2013. These measures are bank regulations that apply a discrimination−e.g. a less favourable treatment−on the basis of the currency of an operation, typically foreign currencies. The new data shows that CBMs have been increasingly used in the post-crisis period, including for macro-prudential purposes. In particular, some Emerging Market Economies, including some OECD countries, have increasingly resorted to and tightened their CBMs, especially to manage capital inflows. Information from these new datasets is also matched with measures on countries’ inability to borrow in domestic currency on international markets, defined as the original sin concept. With the exception of China, only countries suffering from original sin used and tightened CBMs on banks’ foreign exchange liabilities.

Keywords: banking regulations; capital controls; capital flows; financial stability; foreign currency; macroprudential policy (search for similar items in EconPapers)
JEL-codes: C82 E58 F3 F38 F65 G28 (search for similar items in EconPapers)
Date: 2015-12-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1787/5jrp0z9lp1zr-en (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:oec:dafaaa:2015/3-en

Access Statistics for this paper

More papers in OECD Working Papers on International Investment from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by (daf.contact@oecd.org).