Liquidity management of US global banks: Internal capital markets in the great recession

• 成果类型: Article
• 署名作者: Cetorelli, Nicola; Goldberg, Linda S.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2012.05.001
• 发表日期: 2012
• 页码: 299-311
• 关键词: bank; Global bank; liquidity; transmission; Internal capital market; CRISIS

摘要

The recent crisis highlighted the importance of globally active banks in linking markets. One channel for this linkage is through how these banks manage liquidity across their entire banking organization. We document that funds regularly flow between parent banks and their affiliates in diverse foreign markets. We show that parent banks, when hit by a funding shock, reallocate liquidity in the organization according to a locational pecking order. Affiliate locations that are important for the parent bank revenue streams are relatively protected from liquidity reallocations in the organization, while traditional funding locations are more extensively used to buffer shocks to the parent bank balance sheets. (C) 2012 Elsevier B.V. All rights reserved.