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Completed papers:
In progress:
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Institutional Structure of the Interbank Market Under a Currency
Board
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Commercial Bank Reserve Management in the Case of a Currency
Board
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Bank
Regulation in Practice and in Theory
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Internal Ratings-Based Approach
for Credit Risk in Transition Economies
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Human Capital and Educational
Corruption
(with Philip Shaw)
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Financial Dollarization: The Role of Banks and Interest Rates
(with
Henrique S.
Basso and Oscar Calvo-Gonzalez)
Working paper No. 748
at the European Central Bank
Abstract
This paper develops a model exploring the determinants of
financial dollarization. Expanding on the existing literature, our
framework allows interest rate differentials to play a role in
explaining financial dollarization. It also accounts for the
increasing presence of foreign banks in the local financial sector.
Using a newly compiled data set on transition economies we find that
increasing access to foreign funds leads to higher credit
dollarization, while it decreases deposit dollarization. Interest
rate differentials matter for the dollarization of both loans and
deposits. Overall, the empirical results lend support to the
predictions of our theoretical model.
Presented at:
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European Central Bank internal
seminar, August 2006
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EBRD, Septermber 2006
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Joint European meeting of the
European Economic Association and the Econometric Society (EEA/ESEM)
in Budapest, Hungary, August 27 – 31, 2007
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Latin American and Caribbean
Economic Association (LACEA), Latin American Meeting of the
Econometric Society (LAMES) 2007 Parallel Meetings, 4 - 6
October 2007, Bogotá, Colombia
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Swiss National Bank, October 2007
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