Beyond Global Imbalances: Gross capital flows and the role of Shadow Banking
| Author: | Mgr. Tomáš Václavíček |
|---|---|
| Year: | 2017 - summer |
| Leaders: | prof. PhDr. Petr Teplý Ph.D. |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | English |
| Pages: | 103 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/185574/ |
| Abstract: | This study provides an empirical analysis of Shadow banking as a factor influencing crossborder financial flows. It builds upon emerging literature on Shadow banking and empirical literature on global imbalances and global financial flows. The aim of the thesis is to test three hypotheses, which relate global financial flows to lending, change in cross-border bank liabilities, and shadow banking, respectively. The second and third hypotheses are tested on gross capital flows, which, in contrast to net flows, better reflect financing activities. The results suggest that Shadow banking activities are related to higher gross capital flows in periods, when this sector is growing. These flows, however, tend to dry up when Shadow banking activities level off or decline. Among other important factors is the output growth differential and global risk aversion. |
