Technology firms such as Alibaba, Amazon, Facebook, Google and Tencent have grown rapidly over the last two decades. The business model of these “big techs” rests on enabling direct interactions among a large number of users. An essential by-product of their business is the large stock of user data which are utilised as input to[…]
Authors: Yuko Hashimoto ; Signe Krogstrup Date: April 2019 Abstract: This paper assesses the role of bank and nonbank financial institutions’ balance sheet foreign exposures and risk management practices in driving capital flow responses to global risk. Using a unique and previously unexplored dataset on domestic and cross border balance sheet positions of financial institutions[…]
More than ten years have passed since the global financial crisis triggered a comprehensive regulatory reform process. Many important measures have been put in place since then. The title of the next panel discussion therefore raises a very pertinent question for global regulators: where next? Should regulators take a long break, as some stakeholders might[…]
Authors: Ata Can Bertay, Asli Demirgüç-Kunt and Harry Huizinga Date: June 2019 Abstract: This paper provides evidence on how bank performance and strategies vary with the degree of bank internationalization, using data for 113 countries over 2000-15. Over this period, bank internationalization is associated with lower valuations and lower returns on equity. However, developing country[…]
Authors: Harry Huizinga, Luc Laeven Date: June 2019 Abstract: Loan loss provisions in the euro area are negatively related to GDP growth, i.e., they are procyclical. Loan loss provisions tend to be more procyclical at larger and better capitalized banks. The procyclicality of loan loss provisions can explain about two-thirds of the variation of bank[…]
Authors: Mehmet Ziya Gorpe ; Giovanni Covi ; Christoffer Kok Date: May 2019 Abstract: This paper presents a novel approach to investigate and model the network of euro area banks’ large exposures within the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic risk of the euro[…]
Authors: Előd Takáts and Judit Temesvary Date: May 2019 Abstract: We combine a rarely accessed BIS database on bilateral cross-border lending flows with cross-country data on macroprudential regulations. We study the interaction between the monetary policy of major international currency issuers (USD, EUR and JPY) and macroprudential policies enacted in source (home) lending banking systems.[…]
Authors: Angela Maddaloni, Alessandro Scopelliti Date: May 2019 Abstract: Prior to the financial crisis, prudential regulation in the EU was implemented nonuniformly across countries, as options and discretions allowed national authorities to apply a more favorable regulatory treatment. We exploit the national implementation of the CRD and derive a country measure of regulatory flexibility (for[…]
Authors: Fabio Franch, Luca Nocciola, Dawid Żochowski Date: May 2019 Abstract: We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments Database (Cerutti et al., 2017b) and a unique confidential database on balance sheets items of euro-area financial institutions we estimate panel models for 248 banks from 16 euro-area[…]
Authors: Matthieu Darracq Pariès, Christoffer Kok, Elena Rancoita Date: March 2019 Abstract: We analyse the interaction between monetary and macroprudential policies in the euro area by means of a two-country DSGE model with financial frictions and cross-border spillover effects. We calibrate the model for the four largest euro area countries (i.e. Germany, France, Italy, and[…]