Banking Flows and Financial Crisis -- Financial Interconnectedness and Basel Iii Effects

30 Pages Posted: 20 Apr 2016

Date Written: August 1, 2011

Abstract

This paper examines the factors that determine banking flows from advanced economies to emerging markets. In addition to the usual determinants of capital flows in terms of global push and local pull factors, it examines the role of bilateral factors, such as growth differentials and economic size, as well as contagion factors and measures of the depth in financial interconnectedness between lenders and borrowers. The analysis finds profound differences across regions. In particular, in spite of the severe impact of the global financial crisis, banking flows in emerging Europe stand out as a more stable region than is the case in other developing regions. Assuming that the determinants of banking flows remain unchanged in the presence of structural changes, the authors use these results to explore the short-term implications of Basel III capital regulations on banking flows to emerging markets.

Keywords: Debt Markets, Banks & Banking Reform, Emerging Markets, Access to Finance, Economic Theory & Research

Suggested Citation

Ghosh, Swati and Sugawara, Naotaka and Zalduendo, Juan, Banking Flows and Financial Crisis -- Financial Interconnectedness and Basel Iii Effects (August 1, 2011). World Bank Policy Research Working Paper No. 5769, Available at SSRN: https://ssrn.com/abstract=1914980

Swati Ghosh (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Naotaka Sugawara

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Juan Zalduendo

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
314
Abstract Views
1,420
Rank
176,750
PlumX Metrics