Financial disintermediation in internatinal markets and global banks
- Autores: José María Serena Garralda
- Localización: Estabilidad financiera, ISSN 1579-2498, Nº. 26, 2014, págs. 111-132
- Idioma: español
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Resumen
This paper investigates the process of financial disintermediation in international markets after the global financial crisis. Since the outbreak of the crisis, global banks are reducing their cross-border positions, this way reversing their large expansion in the period 2000-2008.
Global banks funding structures are shifting in parallel, with a sharp and protracted reduction in wholesale funding. We test whether this trend towards more stable funding patterns explains the contraction in cross-border bank financing, using a panel of 56 countries, for the period 1991-2013. We find that net redemptions of banks¿ international debt or the declining activity of global banks¿ branches in the US important drivers of the process. We highlight next how, in some regions, financial disintermediation is a defining feature of the post-crisis international markets. International capital markets have gained importance as source of external financing for private borrowers headquartered in emerging economies, supported by easy monetary conditions in advanced economies. The potential implications of such process for financial stability have raised concerns. Assessing them requires further information on bond holders¿ investment profiles, and borrowers¿ financial soundness.
