Open Lecture ”Capital Flows and Financial Intermediation: Is EMU Different?”

Author: Anna Samarina, PhD (University of Groningen)
Topic: Capital Flows and Financial Intermediation: Is EMU Different?
Date and time: September 12, 16:00 - 18:00
Place: IBB
Working language: English.

In the course of the lecture Anna Samarina presented her paper "Capital Flows and Financial Intermediation: Is EMU Different?" The share of domestic bank credit allocated to non-financial business declined significantly in EMU economies since 1990. The paper examined the impact of capital inflows on domestic credit allocation, taking account of (future) EMU membership. The study utilized a novel data set on domestic credit allocation for 38 countries over 1990–2011 and data on capital inflows into the bank and non-bank sectors. The authors estimated panel models controlling for initial financial development, income level, inflation, interest rate, credit market deregulation and current account positions. The results suggested that the decline in the share of credit to non-financial business was significantly larger in (future) EMU economies which experienced more capital inflows into their non-bank sectors.