European Parliament Library

Real and Financial Vulnerabilities from Crossborder Banking Linkages, Kyunghun Kim, Srobona Mitra

Contributor
Abstract
This paper looks at the vulnerabilities stemming from banking sector linkages between countries and their macroeconomic effects. It finds that credit risks (from a banking system’s claims on other countries) and funding risks (from a banking system’s liabilities to another) have declined over the past five years. It also finds that funding vulnerabilities have real effects. During normal times, funding vulnerabilities are associated with significant positive GDP growth surprises. During crisis times, funding vulnerabilities are associated with significant negative GDP growth surprises. The results tell us that policymakers should pay more attention to understanding crossborder funding risks
Table Of Contents
""Cover""; ""Real and Financial Vulnerabilities from Crossborder Banking Linkages""; ""I. INTRODUCTION""; ""II. RELATED LITERATURE""; ""III. DATA AND METHODOLOGY""; ""Data""; ""Methodologies""; ""IV. IS THE WORLD SAFER FROM CROSSBORDER BANKING LINKAGES?""; ""V. WHAT IS THE OUTPUT COST OF VULNERABILITY TO BANKING INTERLINKAGES?""; ""Robustness""; ""VI. CONCLUSIONS""; ""Figure""; ""Figure 1. Credit Shock and Funding Shock Illustrated with Stylized Banking System Balance Sheets""; ""Figure 2. Growth Rate Surprise""; ""Figure 3. Vulnerability to Credit Shock""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781498341417

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