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

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Listed:
  • Lu'is A. V. Cat~ao
  • 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 flexibility helps insulate the non-core to core ratio from such global factors but only significantly so outside periods of major global financial disruptions, as in 2008-2009.

Suggested Citation

  • Lu'is A. V. Cat~ao & Jan Ditzen & Daniel Marcel te Kaat, 2023. "Global Factors in Non-core Bank Funding and Exchange Rate Flexibility," Papers 2310.11552, arXiv.org, revised Jan 2024.
    • Handle: RePEc:arx:papers:2310.11552
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    References listed on IDEAS

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