Essays in Financial Integration and Macroeconomic Stability

"The first chapter studies sudden stops of banking capital inflows to the banking sector in the Eurozone. The empirical approach is two-pronged: First, the paper establishes the stylized facts and shows econometrically that foreign banks behave systematically differently when lending to the banking sector compared to the non-banking sector. Second, the paper aims at demonstrating that foreign banks' cost of monitoring the borrowing banking sector account for the sudden stops of banking inflows to that sector. The second chapter presents a research proposal that suggests to empirically investigate the link between banking capital inflows to banks and house price inflation in the Eurozone via domestic mortgage and real estate lending. The empirical strategy takes advantage of two complementary data sources on foreign banking capital flows, and can either be applied to individual Eurozone member countries or can be scaled-up to a multi-country study. The third chapter presents the ideas for an analysis of the implications of the composition of international bank positions by borrowing sector for the volatility of capital flows and for global currency risk exposure.

PhD Director(s):
C├ędric Tille
Jury member(s): Ugo Panizza

 Record created 2017-05-11, last modified 2018-01-29

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