02092cas a2200277 a 4500 AALejournalIMF021059 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513549149 1018-5941 BD-DhAAL BD-DhAAL Barajas, Adolfo. Global Banks' Dollar Funding : A Source of Financial Vulnerability / Adolfo Barajas, Andrea Deghi, Claudio Raddatz, Dulani Seneviratne. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (50 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 Leading up to the global financial crisis, US dollar activity by global banks headquartered outside the United States played a crucial role in transmitting shocks originating in funding markets. Although post-crisis regulation has improved banking systems' resilience, US dollar funding remains a global vulnerability, as evidenced by strains that reemerged in March 2020 in the midst of the COVID-19 crisis. We show that shocks to US dollar funding costs lead to financial stress in the home economies of these global non-US banks, and to spillovers to borrowers, especially emerging economies. US dollar funding vulnerability amplifies these negative effects, while some policy-related factors act as mitigators, such as swap line arrangements between central banks and international reserve holdings. Thus, these vulnerabilities should be monitored and, to the extent possible, controlled. Mode of access: Internet Deghi, Andrea. Raddatz, Claudio. Seneviratne, Dulani. IMF Working Papers; Working Paper ; No. 2020/113 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/113/001.2020.issue-113-en.xml IMF e-Library