IDEAS home Printed from
   My bibliography  Save this paper

Implementing repurchase agreements in emerging markets


  • Osterberg, William P.


Repurchase Agreements (repos) have received increasing scrutiny as a result of their involvement in the recent financial crisis. While viewed as an important part of the ‘shadow banking system’ allowing non-banks to access liquidity and expand leverage, the legal and accounting status of most ‘repos’ is still unclear. Meanwhile, the usage of ‘repos’ in the development of emerging financial markets continues to expand, playing a pivotal role in monetary operations and fixed income markets. In this briefing, I discuss the main issues surrounding ‘repos’ in relatively undeveloped markets (EMs1) including the legal status of the first leg of the ‘repo’ as a true sale and the distinction between ‘repos’ and ‘sell-buybacks.’ I also discuss aspects of EMs that are relevant to the adoption of ‘repos.’ Primary among these is the thinness of markets, the legal status of ‘repos,’ accounting practices, monetary policy. Recommendations are offered regarding specific issues common to these countries.

Suggested Citation

  • Osterberg, William P., 2011. "Implementing repurchase agreements in emerging markets," MPRA Paper 36011, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:36011

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters,in: Regional Climate Change and Variability, chapter 1 Edward Elgar Publishing.
    2. Peter Hördahl & Michael R King, 2008. "Developments in repo markets during the financial turmoil," BIS Quarterly Review, Bank for International Settlements, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Repurchase agreement; Collateralized loan; Market thinness; Treasuries; Margining; Counterparty risk; Liquidity ratios; Sell-buyback;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:pra:mprapa:36011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.