Earticle

초록

영어

By using country-level data on the foreign affiliates of U.S. global banks in 20 developed and 60 emerging economies from 2006 to 2013, we present consistent evidence that liquidity shocks triggered by a global financial crisis are transmitted to affiliate locations that are important for the parent bank funding sources within the banking group. We find that the funding location of global banks is driven by affiliates’ dependence on local deposit funding, by host country-specific characteristics (financial liberalization), and by foreign affiliate-specific characteristics (liquidity constraints). As a result of foreign affiliates’ support to their parent banks, funding location may suffer internal capital outflows during a financial crisis. We conclude that internal capital outflows are confined to local funding affiliates with sufficient liquidity operating in fully liberalized financial systems. These results indicate that contrary to the findings of Cetorelli and Goldberg (2012), foreign affiliates financed by local deposits rather than a parent bank’s resources were not necessarily a significant source of internal capital outflows from the host country during the global financial crisis. Hence, the benefits of local funding can be achieved without its cost if either high liquidity constraints or low financial liberalization is in place.

목차

Abstract
 Ⅰ. Introduction
 Ⅱ. Related Literature
  1. Local Deposit Funding and Internal Capital Flows
  2. Financial Regulation and Capital Flows
  3. Financial Constraints and Capital Flows
 Ⅲ. Hypothesis Development
 Ⅳ. Methodology and Data Description
  1. Methodology
  2. Data Description
 Ⅴ. Empirical Results
  1. Internal Capital Flows
  2. Internal Capital Flows in Emerging Economies
  3. Robustness Check
  4. Extensions: Volatility of Internal Capital Flows
 Ⅵ. Conclusions
 References
 Appendix

키워드

저자

• Eun-Joo Lee [ Researcher, SSK Research Group, Sogang University ]
• Jungsoo Park [ Professor, Department of Economics, Sogang University ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330