01785cas a2200253 a 4500 AALejournalIMF018411 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484353660 1018-5941 BD-DhAAL BD-DhAAL Krogstrup, Signe. Foreign Currency Bank Funding and Global Factors / Signe Krogstrup, Cedric Tille. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (64 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The literature on the drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial intermediaries' funding flows in different currencies. A concise portfolio model shows that the sign and magnitude of the response of foreign currency funding flows to global risk factors depend on the financial intermediary's pre-existing currency exposure. An analysis of a rich dataset of European banks' aggregate balance sheets lends support to the model predictions, especially in countries outside the euro area. Mode of access: Internet Tille, Cedric. IMF Working Papers; Working Paper ; No. 2018/097 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/097/001.2018.issue-097-en.xml IMF e-Library