Global Liquidity Determinants Across Emerging and Advanced Countries
Journal Title: Journal of Banking and Financial Economics - Year 2015, Vol 1, Issue 3
Abstract
The paper explores the concept of global liquidity and its determinants, focusing on the banking system in advanced and emerging markets. We explore the implications of the interaction between liquidity and its local, global and financial markets determinants. We also analyze the global liquidity channels, i.e. whether foreign banks play a significant role in the country’s financial system. The study focuses on the investigation of banks’ liquidity determinants in 42 countries (advanced and emerging/developing countries) over the 2000–2011 period. The results show the significance of the differences in global liquidity depending on the country’s level of development. We find support to the conjecture that globalization and global banks’ leverage may convey some useful information on global liquidity. We also present an important observation that banks’ lending in advanced countries is shielded from the monetary policy because of their ability to freely access alternative sources of funds.
Authors and Affiliations
Renata Karkowska
Keywords
Related Articles
- EP ID EP344622
- DOI 10.7172/2353-6845.jbfe.2015.1.7
- Views 84
- Downloads 0
Sovereign Debt Restructurings in Belize: Debt Sustainability and Financial Stability Aspects
This paper examines the causes, processes, and outcomes of the two Belize sovereign debt restructurings in 2006–07 and in 2012–13, which occurred outside an IMF-supported program. It finds that the motivation for the two...
Access to Credit as a Growth Constraint
From a sample of 75,854 Slovenian fi rms in the period 1995–2011, we examine the effects of a fi rm’s access to bank credit on its growth. The results suggest that as the external fi nancing constraint relaxes and fi rm...
Is Uruguay More Resilient This Time? Distributional Impacts of a Crisis Similar to the 2001–02 Argentine Crisis
The 2001–02 Argentine crisis had a profound impact on Uruguay’s economy. Uruguay’s gross domestic product shrank by 17.5 percent, and the proportion of people living below the poverty line doubled in only two years. It t...
Risk, capital buffers and bank lending: The adjustment of euro area banks
This paper estimates euro area banks’ internal target capital ratios and investigates whether banks’ adjustment to the targets affects their credit supply and securities holdings during the financial crisis in 2005–2011....
The Effect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance
In this paper the effects of the introduction of the so called “pay per use” -insurance products are examined. These products collect data of mileage of kilometers driven by policy holders. As a result of this data, poli...