Suchergebnisse

Das Phänomen der Illicit Financial Flows hat in den vergangenen Jahren vor allem in der Diskussion um die Finanzierung von Entwicklungszusammenarbeit verstärkt Beachtung gefunden. Investoren wie auch Entwicklungsländer haben die Gefahren und Nebenwirkungen erkannt, die sich nicht nur auf finanzielle Verluste für den betroffenen Staat beschränken, sondern auch dessen Staatlichkeit insgesamt infrage stellen. (KAS-Auslandsinformationen / SWP)

Purpose
The purpose of this paper is to analyze the financial friction effect of non-performing loans (NPLs) on financial intermediation (FI) through empirical evidence from the Brazilian experience.


Design/methodology/approach
The authors develop a new variable, financial intermediation flow and a new indicator, FI, both measures of FI. To empirically test FI, the authors use a dynamic panel data framework that draws on 101 banks (December 2000 to December 2015).


Findings
An increase in NPL reduces FI. Thus, NPL amplifies financial friction in FI. This result holds in different time frames, such as the pre-crisis period, the crisis period and the post-crisis period.


Practical implications
The FI measure developed in this study offers the policymakers a possibility to monitor financial stability.


Originality/value
This study adds to this debate by proposing a measure of FI derived from financial flows. This measure allows one to estimate the role of NPL as a financial friction that can pose a threat to financial stability.

AbstractFor a sample of low‐income countries, we analyse the behaviour of international financial flows during three periods: (i) the 2003–2007 global boom; (ii) the 2008–2009 crisis; and (iii) the 2010–2012 recovery phase. In particular, we examine aid‐adjusted net financial inflows, debt inflows, foreign direct investment inflows and official reserve outflows. We highlight the role of country characteristics in explaining the cross‐country variation in international financial flows during these different phases.

ABSTRACT New Developmentalism has focused its attention on trade problems created, to a large measure, by the divergences between the exchange rate that keeps the current account of the balance of payments balanced and what it calls industrial equilibrium exchange rate, the rate that would preserve the competitiveness of manufacturing firms operating at the state-or-art frontier. ND acknowledges that these rates may be disturbed by financial flows, but the role of capital account movements may be underestimated. The paper argues that financial flows have indeed been underestimated, which may make more difficult to devise efficacious policies to correct the problem of currency overvaluation.