IDEAS home Printed from https://ideas.repec.org/p/fip/fedgfe/2022-51.html
   My bibliography  Save this paper

Pre-Positioning and Cross-Border Financial Intermediation

Author

Listed:
  • Nicholas K. Tabor
  • Jeffery Y. Zhang

Abstract

The benefits of cross-border financial activity are wide-ranging, from greater competition and more efficient markets to broader and more stable access to capital. During normal economic times, the official sector and private sector share an incentive to foster such cross-border financial activities. During a financial crisis, however, the short-term alignment of official- and private-sector incentives can diverge—sometimes significantly. We present a game-theoretic model of the underlying trade-offs and discuss lessons for international financial regulators, placing them in the context of the 2008 financial crisis, when challenges in cross-border cooperation both channeled and amplified financial stress. We also discuss the critical unfinished business of post-crisis regulatory measures to improve oversight of internationally active financial institutions.

Suggested Citation

  • Nicholas K. Tabor & Jeffery Y. Zhang, 2022. "Pre-Positioning and Cross-Border Financial Intermediation," Finance and Economics Discussion Series 2022-051, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgfe:2022-51
    DOI: 10.17016/FEDS.2022.051
    as

    Download full text from publisher

    File URL: https://www.federalreserve.gov/econres/feds/files/2022051pap.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.17016/FEDS.2022.051?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Bank Capital; Bank Liquidity; Cross-Border Finance; Market Fragmentation; Pre-Positioning;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F00 - International Economics - - General - - - General
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F30 - International Economics - - International Finance - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgfe:2022-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ryan Wolfslayer ; Keisha Fournillier (email available below). General contact details of provider: https://edirc.repec.org/data/frbgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.