Author(s): Linda S. Goldberg and Fabiola Ravazzolo Date: April 2022 Abstract: In March 2020, the Federal Reserve eased the terms on its standing swap lines in collaboration with other central banks, reactivated temporary swap agreements, and then introduced the new Foreign and International Monetary Authorities (FIMA) repo facility. We provide new evidence on how the[…]
Author(s): Federico Cingano, Fadi Hassan Date: April 2022 Abstract: Using detailed bank-firm matched data, we study the impact of international financial flows on misallocation. We exploit a boom of capital inflows in Italy and identify the patterns of credit allocation by banks with different exposure to such boom. We find that exposed banks tilt credit[…]
Author(s): Viral V. Acharya, Matteo Crosignani, Tim Eisertm, and Sascha Steffen Date: April 2022 Abstract: This paper surveys the theory on zombie lending incentives and the consequences of zombie lending for the real economy. It also offers a historical perspective by reviewing the growing empirical evidence on zombie lending along three dimensions: (i) the role[…]
Author(s): Simona Malovaná, Martin Hodula, Zuzana Gric, Josef Bajzík Date: March 2022 Abstract: We surveyed experts from academia, central banks and other regulatory institutions on the preferred institutional setup of macroprudential policy and the underlying interactions stemming from the conduct of monetary and macroprudential policy. We find substantial support for the integration setup, under which[…]
Author(s): Iñaki Aldasoro, John Caparusso and Yingyuan Chen Date: February 2022 Abstract: Banks operate internationally through networks of branches and subsidiaries, also known as foreign banking offices (FBOs). Newly collected system- and entity-level data across two dozen host countries confirm stylised facts on these entities’ balance sheets and establish new ones. Subsidiaries, which resemble local[…]
Author(s): Iñaki Aldasoro, Sebastian Doerr and Haonan Zhou Date: March 2022 Abstract: Non-bank lenders are an important source of syndicated credit to non-financial corporates in most regions and industries. Their loan origination, however, is more concentrated by location and sector than that of banks and it is also more volatile. Syndicated loans arranged by non-banks[…]
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[…]