Central bank transparency and cross-border banking / Stefan Eichler, Helge Littke, Lena Tonzer

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859171205

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urn:nbn:de:gbv:3:2-54634

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Halle (Saale), Germany : Halle Institute for Economic Research (IWH), May 2016

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1 Online-Ressource (III, 55 Seiten, 1,28 MB) : Diagramme, Karten

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Sprache

eng

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Inhaltliche Zusammenfassung

We analyze the effect of central bank transparency on cross-border bank activities. Based on a panel gravity model for cross-border bank claims for 21 home and 47 destination countries from 1998 to 2010, we find strong empirical evidence that a rise in central bank transparency in the destination country, on average, increases cross-border claims. Using interaction models, we find that the positive effect of central bank transparency on cross-border claims is only significant if the central bank is politically independent. Central bank transparency and credibility are thus considered complements by banks investing abroad.

Schriftenreihe

IWH-Diskussionspapiere ; no. 16/2016 ppn:837399270

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