Global Liquidity Determinants Across Emerging and Advanced Countries

• Authors: Karkowska Renata
• Languages of publication: EN

Abstracts

EN

The paper explores the concept of global liquidity and its determinants, focusing on the banking system in advanced and emerging markets. We explore the implications of the interaction between liquidity and its local, global and financial markets determinants. We also analyze the global liquidity channels, i.e. whether foreign banks play a significant role in the country’s financial system. The study focuses on the investigation of banks’ liquidity determinants in 42 countries (advanced and emerging/developing countries) over the 2000–2011 period. The results show the significance of the differences in global liquidity depending on the country’s level of development. We find support to the conjecture that globalization and global banks’ leverage may convey some useful information on global liquidity. We also present an important observation that banks’ lending in advanced countries is shielded from the monetary policy because of their ability to freely access alternative sources of funds.

Keywords

EN

global liquidity; emerging countries; credit supply; financial instability

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Journal of Banking and Financial Economics
• Year: 2015
• Issue: 1(3)
• Pages: 152-170

Dates

online

2015-03-26

Contributors

author

Karkowska Renata

• Faculty of Management University of Warsaw, Poland

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Identifiers

ISSN

2353-6845

DOI

10.7172/2353-6845.jbfe.2015.1.7