Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

Bank of Japan : (Research Paper) What is the Major Determinant of Credit Flows through Cross-Border Banking?

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/19/2013 | 08:20am CEST

March 19, 2013
Toyoichiro Shirota*

Abstract

This paper examines the major determinant of the cross-border credit flows from global banks toward 70 vis-á-vis countries in seven regions of the world. Employing a Bayesian dynamic latent factor model, we decompose the volatilities of banking flows into the contribution of the global-common factor, the regional-common factor, and the national-specific factor. The results indicate that the global-common factor explains 36.4 percent of volatilities in overall cross-border banking flow, suggesting that the international propagations of shocks through global banks are quantitatively important. Especially, the contribution of the global-common factor is increasing in the 2000s. At the same time, main determinants are largely heterogeneous across countries. This heterogeneity implies that the desirable policy response to credit inflows could be different for each host country.

JEL Classifications
C11, F3

Keywords
International Capital Flows; Dynamic Latent Factor; Bayesian Estimation

The author would like to thank Shuhei Aoki, Michael Fischer, Ichiro Fukunaga, Hirotaka Hideshima, Hibiki Ichiue, Shun Kobayashi, Kazuo Monma, Koji Nakamura, Ko Nakayama, Kanako Saeki, Hidehiko Sogano, and Kenichiro Watanabe for comments and suggestions. The views expressed herein are those of the author and do not reflect those of the Bank of Japan.

* Financial Markets Department
E-mail : toyoichirou.shirota@boj.or.jp
Notice

Papers in the Bank of Japan Working Paper Series are circulated in order to stimulate discussion and comments. Views expressed are those of authors and do not necessarily reflect those of the Bank.
If you have any comment or question on the working paper series, please contact each author.
When making a copy or reproduction of the content for commercial purposes, please contact the Public Relations Department (post.prd8@boj.or.jp) at the Bank in advance to request permission. When making a copy or reproduction, the source, Bank of Japan Working Paper Series, should explicitly be credited.

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:36p ECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : Condemning Killing of Peacekeepers in Central African Republic, Secretary-General, Expresses Deep Concern that Unrest Threatens Gains towards Lasting Peace
06:36p London daily FX trading volumes rise on year in April - BoE
06:33p Loblaw sees challenges from lower drug prices, higher wages
06:31p OSUN STATE GOVERNMENT : Aregbesola, Emir of Borgu Reiterate Need For Nigeria’s Unity
06:29p U.S. new home sales rise in June, but trend softening
06:28p U.S. new home sales rise in June, but trend softening
06:28p Germany retailer Aldi to invest 5.2 billion euros in stores
06:26p ISED INNOVATION SCIENCE AND ECONOMIC DEVELOPMEN : Government of Canada invests in Nova Scotia's clean technology sector to create jobs
06:26p DAYS OF DROUGHT : Rancher sells off 70 percent of herd
06:26p U S DEPARTMENT OF TREASURY : Statement of Secretary Steven T. Mnuchin United States Department of the Treasury Before the Committee on Appropriations Subcommittee on Financial Services and General Government United States Senate
Latest news "Economy & Forex"
Advertisement