Mapping the Shadow Banking System Through a Global Flow of Funds Analysis

58 Pages Posted: 20 Feb 2014

See all articles by Luca Errico

Luca Errico

International Monetary Fund (IMF)

Artak Harutyunyan

International Monetary Fund (IMF) - Statistics Department

Elena Loukoianova

International Monetary Fund (IMF)

Richard Walton

International Monetary Fund (IMF) - Statistics Department

Yevgeniya Korniyenko

Bank of England

Goran Amidžic

International Monetary Fund (IMF) - Statistics Department

Hanan AbuShanab

International Monetary Fund (IMF)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: January 2014

Abstract

This paper presents an approach to understanding the shadow banking system in the United States using a new Global Flow of Funds (GFF) conceptual framework developed by the IMF’s Statistics Department (STA). The GFF uses external stock and flow matrices to map claims between sector-location pairs. Our findings highlight the large positions and gross flows of the U.S. banking sector (ODCs) and its interconnectedness with the banking sectors in the Euro area and the United Kingdom. European counterparties are large holders of U.S. other financial corporations (OFCs) debt securities. We explore the relationship between credit to domestic entities and the growth of non-core liabilities. We find that external debt liabilities of the financial sector are procyclical and are closely aligned with domestic credit growth.

Keywords: Banking systems, United States, Shadow economy, Capital flows, International capital markets, Shadow Banking, Global Flow of Funds, Financial Stability, Data Gaps, banking sector, banking statistics, bank for international settlements, bank liabilities, banking activities, banking sectors, var model, debt securities, off balance sheet, bank balance sheets, offshore banking, domestic credit, banking sector assets, government finance, bank offices, banking business, central banking, bank credit, banking accounts, bank monitoring

JEL Classification: F30, F65, G01, G20, G15

Suggested Citation

Errico, Luca and Harutyunyan, Artak and Loukoianova, Elena and Walton, Richard and Korniyenko, Yevgeniya and Amidžić, Goran and AbuShanab, Hanan and Shin, Hyun Song, Mapping the Shadow Banking System Through a Global Flow of Funds Analysis (January 2014). IMF Working Paper No. 14/10. Available at SSRN: https://ssrn.com/abstract=2398812

Luca Errico (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Artak Harutyunyan

International Monetary Fund (IMF) - Statistics Department

Washington, DC
United States

Elena Loukoianova

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Richard Walton

International Monetary Fund (IMF) - Statistics Department

Washington, DC
United States

Yevgeniya Korniyenko

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Goran Amidžić

International Monetary Fund (IMF) - Statistics Department ( email )

Washington, DC
United States

Hanan AbuShanab

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

Register to save articles to
your library

Register

Paper statistics

Downloads
322
Abstract Views
2,089
rank
94,137
PlumX Metrics