Cournot Seminar – Jan DITZEN (U. of Bolzano)

Event details :

Global Factors in Non-core Bank Funding and Exchange Rate Flexibility

Luis A.V. Catao, Jan Ditzen, Daniel Marcel te Kaat

Abstract: We show that fluctuations in the ratio of non-core to core funding in the banking systems of advanced economies are driven by a handful of global factors of both real and financial natures, with country-specific factors playing no significant roles. Exchange rate exibility helps insulate the non-core to core ratio from such global factors but only significantly so outside periods of major global shocks, as in 2007-2009 and 2020.

Keywords: Global Financial Cycle, Bank Funding, Mundellian Trilemma, Panel Cross-Sectional Dependence, Principal Components, Common Correlated Effects Estimator

Seminar webpage: https://beta-economics.fr/seminaires-cournot-2023-2024/

Zoom link: https://cnrs.zoom.us/j/93195889488?pwd=M1Y3RzFpVlRIc3NOeWF0OUd5cHVSdz09