Mapping The Shadow Banking System Through A Global Flow Of Funds Analysis

Author : Mr.Luca Errico
Publisher : International Monetary Fund
ISBN 13 : 1484383753
Total Pages : 57 pages
Book Rating : 4.59/5 ( download)

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Download or read book Mapping the Shadow Banking System Through a Global Flow of Funds Analysis written by Mr.Luca Errico and published by International Monetary Fund. This book was released on 2014-01-24 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents an approach to understanding the shadow banking system in the United States using a new Global Flow of Funds (GFF) conceptual framework developed by the IMF’s Statistics Department (STA). The GFF uses external stock and flow matrices to map claims between sector-location pairs. Our findings highlight the large positions and gross flows of the U.S. banking sector (ODCs) and its interconnectedness with the banking sectors in the Euro area and the United Kingdom. European counterparties are large holders of U.S. other financial corporations (OFCs) debt securities. We explore the relationship between credit to domestic entities and the growth of non-core liabilities. We find that external debt liabilities of the financial sector are procyclical and are closely aligned with domestic credit growth.

Author : Mr.Zoltan Pozsar
Publisher : International Monetary Fund
ISBN 13 : 1463927231
Total Pages : 19 pages
Book Rating : 4.33/5 ( download)

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Download or read book The Nonbank-Bank Nexus and the Shadow Banking System written by Mr.Zoltan Pozsar and published by International Monetary Fund. This book was released on 2011-12-01 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present way of thinking about financial intermediation does not fully incorporate the rise of asset managers as a major source of funding for banks through the shadow banking system. Asset managers are dominant sources of demand for non-M2 types of money and serve as source collateral ?mines' for the shadow banking system. Banks receive funding through the re-use of pledged collateral ?mined' from asset managers. Accounting for this, the size of the shadow banking system in the U.S. may be up to $25 trillion at year-end 2007 and $18 trillion at year-end 2010, higher than earlier estimates. In terms of policy, regulators will need to consider the re-use of pledged collateral when defining bank leverage ratios. Also, given asset managers' demand for non-M2 types of money, monitoring the shadow banking system will warrant closer attention well beyond the regulatory perimeter.

Author : Matthias Thiemann
Publisher : Cambridge University Press
ISBN 13 : 1108630162
Total Pages : 307 pages
Book Rating : 4.60/5 ( download)

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Download or read book The Growth of Shadow Banking written by Matthias Thiemann and published by Cambridge University Press. This book was released on 2018-05-31 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 'shadow banking system' refers to a system of credit-provision occurring outside of the official regulatory perimeter of commercial banks. Facilitated by securitization vehicles, mutual funds, hedge funds, investment banks and mortgage companies, the function and regulation of these shadow banking institutions has come under increasing scrutiny after the subprime crisis of 2007–8. Matthias Thiemann examines how regulators came to tolerate the emergence of links between the banking and shadow banking systems. Through a comparative analysis of the US, France, the Netherlands and Germany, he argues that fractured domestic and global governance systems determining the regulatory approach to these links ultimately aggravated the recent financial crisis. Since 2008, shadow banking has even expanded and the incentives for banks to bend the rules have only increased with increasing regulation. Thiemann's empirical work suggests how state-finance relations could be restructured to keep the banking system under state control and avoid future financial collapses.

Author : Mr.Luca Errico
Publisher : International Monetary Fund
ISBN 13 : 1475517696
Total Pages : 57 pages
Book Rating : 4.99/5 ( download)

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Download or read book Mapping the Shadow Banking System Through a Global Flow of Funds Analysis written by Mr.Luca Errico and published by International Monetary Fund. This book was released on 2014-01-24 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents an approach to understanding the shadow banking system in the United States using a new Global Flow of Funds (GFF) conceptual framework developed by the IMF’s Statistics Department (STA). The GFF uses external stock and flow matrices to map claims between sector-location pairs. Our findings highlight the large positions and gross flows of the U.S. banking sector (ODCs) and its interconnectedness with the banking sectors in the Euro area and the United Kingdom. European counterparties are large holders of U.S. other financial corporations (OFCs) debt securities. We explore the relationship between credit to domestic entities and the growth of non-core liabilities. We find that external debt liabilities of the financial sector are procyclical and are closely aligned with domestic credit growth.

Author : Tobias Adrian
Publisher : International Monetary Fund
ISBN 13 : 1484343883
Total Pages : 47 pages
Book Rating : 4.83/5 ( download)

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Download or read book Shadow Banking and Market-Based Finance written by Tobias Adrian and published by International Monetary Fund. This book was released on 2018-08-01 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Variants of nonbank credit intermediation differ greatly. We provide a conceptual framework to help distinguish various characteristics—structural features, economic motivations, and risk implications—associated with different forms of nonbank credit intermediation. Anchored by this framework, we take stock of the evolution of shadow banking and the extent of its transformation into market-based finance since the global financial crisis. In light of the substantial regulatory and supervisory responses of recent years, we highlight key areas of progress while drawing attention to elements where work still needs to be done. Case studies of policy challenges arising in different jurisdictions are also discussed. While many of the amplification forces that were at play during the global financial crisis have diminished, the post-crisis reform agenda is not yet complete, and policy makers must remain attentive to new challenges looming on the horizon.

Author : Mr.Ashok Vir Bhatia
Publisher : International Monetary Fund
ISBN 13 : 1475504713
Total Pages : 30 pages
Book Rating : 4.12/5 ( download)

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Download or read book Leverage? What Leverage? A Deep Dive into the U.S. Flow of Funds in Search of Clues to the Global Crisis written by Mr.Ashok Vir Bhatia and published by International Monetary Fund. This book was released on 2012-06-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper questions the view that leverage should have forewarned us of the global financial crisis of 2007-09, pointing to several gearing indicators that were neither useful portents of the onset of the crisis nor of its ferocity. Instead it shows, first, that the use of ill-suited collateral in the secured funding operations of U.S.-based investment banks was the fatal link between the collapse of structured finance and the global malfunction of funding markets that turbocharged the downdraft; and, second, that this insight (and others) can be decrypted from the Flow of Funds Accounts of the United States.

Author : Mr.Stijn Claessens
Publisher : International Monetary Fund
ISBN 13 : 1475597940
Total Pages : 16 pages
Book Rating : 4.43/5 ( download)

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Download or read book What is Shadow Banking? written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2014-02-11 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is much confusion about what shadow banking is. Some equate it with securitization, others with non-traditional bank activities, and yet others with non-bank lending. Regardless, most think of shadow banking as activities that can create systemic risk. This paper proposes to describe shadow banking as “all financial activities, except traditional banking, which require a private or public backstop to operate”. Backstops can come in the form of franchise value of a bank or insurance company, or in the form of a government guarantee. The need for a backstop is in our view a crucial feature of shadow banking, which distinguishes it from the “usual” intermediated capital market activities, such as custodians, hedge funds, leasing companies, etc.

Author : Perry Mehrling
Publisher : Princeton University Press
ISBN 13 : 1400836263
Total Pages : 189 pages
Book Rating : 4.60/5 ( download)

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Download or read book The New Lombard Street written by Perry Mehrling and published by Princeton University Press. This book was released on 2010-11-08 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: How the U.S. Federal Reserve began actively intervening in markets Walter Bagehot's Lombard Street, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit system. Bagehot's book set down the principles that helped define the role of modern central banks, particularly in times of crisis—but the recent global financial meltdown has posed unforeseen challenges. The New Lombard Street lays out the innovative principles needed to address the instability of today's markets and to rebuild our financial system. Revealing how we arrived at the current crisis, Perry Mehrling traces the evolution of ideas and institutions in the American banking system since the establishment of the Federal Reserve in 1913. He explains how the Fed took classic central banking wisdom from Britain and Europe and adapted it to America's unique and considerably more volatile financial conditions. Mehrling demonstrates how the Fed increasingly found itself serving as the dealer of last resort to ensure the liquidity of securities markets—most dramatically amid the recent financial crisis. Now, as fallout from the crisis forces the Fed to adapt in unprecedented ways, new principles are needed to guide it. In The New Lombard Street, Mehrling persuasively argues for a return to the classic central bankers' "money view," which looks to the money market to assess risk and restore faith in our financial system.

Author : José Vinãls
Publisher : International Monetary Fund
ISBN 13 : 1484340949
Total Pages : 27 pages
Book Rating : 4.43/5 ( download)

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Download or read book Creating a Safer Financial System written by José Vinãls and published by International Monetary Fund. This book was released on 2013-05-14 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.

Author : Nan Zhang
Publisher : Springer Nature
ISBN 13 : 9819710294
Total Pages : 311 pages
Book Rating : 4.94/5 ( download)

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Download or read book Global Flow of Funds Analysis written by Nan Zhang and published by Springer Nature. This book was released on with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: