Central and Commercial Bank Balance Sheet Risk Before, During, and After the Global Financial Crisis

February 27, 2015

Preview Citation

Format: Chicago

Joe Crowley. Central and Commercial Bank Balance Sheet Risk Before, During, and After the Global Financial Crisis, (USA: International Monetary Fund, 2015) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents an overview of exposures in the balance sheets of central banks, banks, and other depository institutions during the past decade, with emphasis on asset growth and currency composition. It exploits the IMF’s SRF-based monetary data to show: (i) there was a widely observed buildup of assets prior to the global financial crisis, but there has been no significant reduction in its wake; (ii) the foreign currency composition of the balance sheets of banks and other depository institutions remained remarkably constant in spite of the crisis, significant changes in the composition of balance sheets, and globalization, and does not seem to have been significantly influenced by the behavior of exchange rates; and (iii) exposure to households increased prior to the crisis, but this increased risk was offset by increased capitalization.

Subject: Banking, Commercial banks, Currencies, Exchange rate flexibility, Exchange rates, Financial institutions, Financial statements, Foreign exchange, Money, Public financial management (PFM)

Keywords: Asset growth, Balance sheet composition, Commercial banks, Currencies, Currency composition, Dollarization, Europe, Exchange rate flexibility, Exchange rates, FC assets, FC liability, FC share, Financial statements, Global, Liability share, Net FC position, ODC assets, Sub-Saharan Africa, WP

Publication Details

Pages:

54
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/047
Stock No:

WPIEA2015047
ISBN:

9781475564273
ISSN:

1018-5941

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