Kiel Working Papers, Kiel Institute for World Economics
No 974:
What Determines Maturity? An Analysis for Foreign Assets of German Commercial Banks
Dr. Claudia M. Buch
Abstract: Surges and reversals of short-term foreign liabilities are
often held responsible for instabilities in international financial
markets. Yet, empirical evidence on the factors determining the maturity of
capital flows is scant. This paper analyzes the determinants of foreign
assets of German banks for a panel of up to 73 countries for the years
19851997. Cross section estimates show that short- and long-term assets
are highly correlated with foreign trade links but not necessarily with
variables capturing regulatory restrictions. Trade activities are more
important in explaining claims on banks versus non-banks. There is some
evidence for a negative impact of exchange rate volatility on the share of
short-term assets.
Keywords: foreign asset demand, maturity, regulations, Germany, panel cointegration; (follow links to similar papers)
JEL-Codes: F21; F23; G21; (follow links to similar papers)
24 pages, April 2000
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