Author(s): Valentina Bruno and Hyun Song Shin Date: August 2015 Abstract: We conduct a firm-level analysis of borrowing in US dollars by non-financial corporatesfrom outside the United States. The dataset combines bond issuance data with firm-levelfinancial information. We find that firms with already high cash holdings are more likelyto issue US dollar-denominated bonds, and that[…]
Author(s): Gabriel Soderberg, Marianne Bechara, Wouter Bossu, Natasha X Che, John Kiff, Inutu Lukonga, Tommaso Mancini Griffoli, Tao Sun, and Akihiro Yoshinaga Date: February 2022 Abstract: Central banks are increasingly pondering whether to issue their own digital currencies to the general public, so-called retail central bank digital currency (CBDC). The majority of IMF member countries[…]
Author(s): Thorsten Beck, Consuelo Silva-Buston, Wolf Wagner Date: January 2022 Abstract: Using data on 113 banking groups, spanning 116 host and 40 home countries, we find that cross-border banks increase lending in a foreign subsidiary when the degree to which their other (foreign) subsidiaries are covered by supervisory cooperation agreements increases. This increase is funded[…]
Author(s): Kenza Benhima, Rachel Cordonier Date: February 2022 Abstract: We examine empirically the effect of two types of shocks related to expectations – “news” (increases in expected future productivity) and “sentiment” (surges in optimism unrelated to future productivity) – on gross capital flows. These two shocks together explain more than 80% of the variation in[…]
Author(s): Iñaki Aldasoro, Sebastian Doerr, and Haonan Zhou Date: January 2022 Abstract: This paper provides first cross-country evidence on non-bank lending during crises. We show that non-banks contract their syndicated lending by over 50% more than banks during financial shocks in borrower countries. Establishing that non-banks serve riskier borrowers globally, we find that differences in[…]
Author(s): Alexander Plekhanov and Marta Skrzypińska Date: January 2022 Abstract: This paper sheds light on the effectiveness of policies addressing high non-performing loans (NPLs). Using data on ownership of subsidiaries of foreign banks in Emerging Europe, we first show that changes in NPLs of parent banks are associated with changes in NPLs of their foreign affiliates,[…]
Author(s): Stefan Avdjiev, and Maximilian Jager Date: January 2022 Abstract: We investigate the patterns and implications of bank opacity in Europe using a rich bank-level data set. Employing a novel event study methodology, we document that public data releases by the European Banking Authority (EBA) on banks’ exposures to individual countries and sectors contained information[…]
Author(s): Falko Fecht, Roman Inderst, Sebastian Pfeil Date: January 2022 Abstract: We offer a theory of the “boundary of the firm” tailored to banks as it builds on a single risk-shifting inefficiency and takes into account interbank lending, as an alternative to integration, and insured deposit financing. It explains why deeper economic integration should cause also[…]
Author(s): Anusha Chari, Karlye Dilts Stedman, Kristin Forbes Date: January 2022 Abstract: The effects of macroprudential policy on portfolio flows vary considerably across the global financial cycle. A tighter ex-ante macroprudential stance amplifies the impact of global risk shocks on bond and equity flows, increasing outflows significantly more during risk-off episodes and increasing inflows significantly more[…]
Author(s): Gyöngyi Lóránth, Anatoli Segura, Jing Zeng Date: January 2022 Abstract: We study supervisory interventions in cross-border banks under different institutional architectures in a model in which a bank may provide voluntary support to an impaired subsidiary using resources in a healthy subsidiary. While a supranational architecture permits voluntary support, a national architecture gives rise to[…]