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Intra-financial assets and the intermediation role of the financial sector

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  • Daniel Carvalho

    (Banco de Portugal)

Abstract

This paper provides two main contributions. First, it proposes a measure of intra-financial assets, i.e., financial assets within the financial sectors, and documents the rapid growth of these claims in European countries. Second, it looks at the relationship of total and intra-financial assets of banks and non-banks and credit provided to the non-financial sectors. Results show that while total assets of both banks and non-banks are strongly associated with loans to non-financial corporations and households, intra-financial assets of banks are associated with loans to non-financial corporations only and intra-financial assets of non-banks with loans to households.

Suggested Citation

  • Daniel Carvalho, 2022. "Intra-financial assets and the intermediation role of the financial sector," Trinity Economics Papers tep0622, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:tep0622
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    File URL: http://www.tcd.ie/Economics/TEP/2022/TEP0622.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Banksandnon-banksinterconnectedness; credit; finance-growthnexus;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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