Global Factors in Non-core Bank Funding and Exchange Rate Flexibility

• Tác giả: Luís A. V Catão, Jan Ditzen, Daniel Marcel te Kaat
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.456 Exchange rates
• Thông tin xuất bản: 2023
• Bộ sưu tập: Metadata
• ID: 198343

Tóm tắt

We show that fluctuations in the ratio of non-core to core funding in the banking systems of advanced economies are largely driven by three global factors of both real and financial natures, with country-specific factors playing only a minor role. Exchange rate flexibility helps insulate the non-core to core ratio from such global factors. This insulation is stronger in periods away from global crises. Tighter prudential regulations appear to have a complementary effect to exchange rate insulation.