International banks pose risk to global financial system, NY Fed paper finds
Researchers at the New York Fed have identified what may be a "funding risk in global banking" affecting in particular banks with maturity transformation operations outside their home jurisdictions.
In How Do Global Banks Scramble for Liquidity? Evidence from the Asset-Backed Commercial Paper Freeze of 2007, authors Viral Acharya, Gara Afonso and Anna Kovner investigate how banks responded to a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market in August 2007.
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