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

By Luca Errico, Artak Harutyunyan, Elena Loukoianova, Richard Walton, Yevgeniya Korniyenko, Goran Amidžić, Hanan AbuShanab, Hyun S Shin

January 24, 2014

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Luca Errico, Artak Harutyunyan, Elena Loukoianova, Richard Walton, Yevgeniya Korniyenko, Goran Amidžić, Hanan AbuShanab, and Hyun S Shin. Mapping the Shadow Banking System Through a Global Flow of Funds Analysis, (USA: International Monetary Fund, 2014) accessed December 23, 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 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.

Subject: Balance of payments, Banking, Capital flows, Commercial banks, Financial institutions, Financial services, Financial statements, Public financial management (PFM), Securities, Shadow banking

Keywords: Bank, Banking sector asset, Banking sector balance sheet, Banking system, Broker dealer sector, Capital flows, Commercial banks, Data Gaps, Financial asset, Financial Stability, Financial statements, Global, Global Flow of Funds, IMF surveillance, Lending boom, Ofc debt security category, Offices in the United States, Securities, Securities liability, Shadow Banking, Shadow banking system, Subprime mortgage, WP

Publication Details

Pages:

57
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/010
Stock No:

WPIEA2014010
ISBN:

9781475517699
ISSN:

1018-5941

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