Global liquidity and capital flow regulations

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dc.cclicenceN/Aen
dc.contributor.authorOsina, Nataliia
dc.date.acceptance2020-06-29
dc.date.accessioned2020-10-22T08:22:56Z
dc.date.available2020-10-22T08:22:56Z
dc.date.issued2020-06-29
dc.descriptionThe file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.en
dc.description.abstractAfter the Global Financial Crisis, the usage of capital controls and macroprudential policies has returned and becomes an essential element of the policy paradigm in different countries. However, our knowledge on the effectiveness of these policy instruments is still insufficient and requires serious empirical reconsideration. The main contribution of our paper is in identifying that capital controls (on both outflows and inflows) and macroprudential instruments are effective measures in reducing the volume of cross-border banking flows in a sample of 112 countries over the period 2000–2016. Using panel regressions incorporating country fixed effects, we find that FX and/or countercyclical reserve and countercyclical capital buffer requirements, reserve requirement ratios and concentration limits are the most effective macroprudential instruments to manage countries’ exposures to global liquidity fluctuations. Additionally, capital surcharges on SIFIs, limits on interbank exposures and foreign currency loans are also associated with a large reduction in flows, a finding which contributes to the literature by emphasizing the importance of macroprudential instruments aimed at financial institutions’ assets or liabilities. However, leverage ratios, limits on domestic currency loans, levy/tax on financial institutions, and other borrower related instruments appear to be insignificant regulatory measures. At times of large and volatile cross-border capital flows, it is desirable to employ both capital controls and macroprudential policies, with latter tend to be generally more effective measures in reducing the volume of cross-border banking flows. The results are robust to changes in the estimation methodology and varying sets of the control variables.en
dc.exception.reasonI have joined DMU only on the 15 of September 2020 and I am a new starter. My contract start date was postponed while I got my conditional Offer for a Lecturer in Accounting and Finance position at DMU on the 12 November 2019. I would like to highlight that article "Global governance and capital flow regulations" appears now only in online articles and currently, it is unknown when it will enter the full JBR Journal Issue. I couldn't join DMU due to COVID-19 as my initial start date was supposed to be 4 of May 2020. Due to the fact that at time of Offer 12 November 2019 I was in my country (Ukraine) - I was needed to open my Visa there and I could arrive in the UK only in September and officially joined as a new starter only on the 15 of September 2020 due to COVID-19.en
dc.exception.ref2021codes252cen
dc.funderNo external funderen
dc.identifier.citationOsina, N. (2020) Global liquidity and capital flow regulations. Journal of Banking Regulation (JBR),en
dc.identifier.doihttps://doi.org/10.1057/s41261-020-00128-y
dc.identifier.issn1745-6452
dc.identifier.urihttps://rdcu.be/b5jql
dc.identifier.urihttps://dora.dmu.ac.uk/handle/2086/20305
dc.language.isoenen
dc.peerreviewedYesen
dc.publisherSpringeren
dc.subjectGlobal liquidityen
dc.subjectCapital flow regulationsen
dc.subjectCapital controlsen
dc.subjectMacroprudential policiesen
dc.subjectEffectivenessen
dc.subjectVolume of cross-border banking flowsen
dc.titleGlobal liquidity and capital flow regulationsen
dc.typeArticleen

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