ORCID
Renata Karkowska 0000-0002-6335-2973
Abstract
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.
Recommended Citation
Karkowska, Renata
(2024)
"Global Liquidity Determinants Across Emerging and Advanced Countries,"
Journal of Banking and Financial Economics: Vol. 2015:
No.
3, Article 7.
DOI: 10.7172/2353-6845.jbfe.2015.1.7
Available at:
https://press.wz.uw.edu.pl/jbfe/vol2015/iss3/7
First Page
152
Last Page
170
Page Count
19
Received Date
24 March 2015
Revised Date
28 April 2015
Accept Date
5 May 2015
Online Available Date
18 May 2015
DOI
10.7172/2353-6845.jbfe.2015.1.7
JEL Code
E5; E44; G20; F3
Publisher
University of Warsaw