Time: 13:00 – 15:00 (GMT+1), Wednesday, 6 May 2020
Presenter: Professor Victor Murinde, SOAS University of London
Online venue: Click here to join the CGF Seminar Room on Microsoft Teams
Abstract
Globalization of financial systems and the latest severe worldwide financial crisis have raised questions about the channels of transmission of international financial shocks across countries. We seek to identify the main channel through which fluctuations in credit markets in developed countries are transmitted to developing economies; we also test the effectiveness of macroprudential regulation in mitigating possible perverse effects of these capital flows. Using panel data from 74 developing and emerging countries, we uncover new evidence that cross-border bank capital flows from developed countries impact positively on domestic credit cycles in developing countries. Also, we find that the main transmission channel is commodity price cycles. We show how appropriate macroprudential regulation can mitigate the negative impact of these cross-border bank capital flows.
Keywords: Cross-border banking, capital flows, credit cycles, commodity prices, macro-prudential regulation.
JEL Classification : G21, F34, E50, F42
Presenter
Professor Victor Murinde is a financial economist, with more than 25 years’ expertise, post-PhD, mainly involving university research and teaching, but also including senior-level stints at practitioner, policy and consultancy roles for governments and leading international organisations. He has contributed over 100 research papers to the financial economics literature, mainly in the areas of banking and finance, development finance, and financial markets.
According to the UK Research Excellence Framework (REF2014), his research on “Shaping Bank Regulatory Reforms in Africa” was recognized for exceptional impact. He was the founding Director of African Development Institute at the African Development Bank (2011-2014). He is the Chair of Africa Regional Standing Committee of the Econometric Society. Also, he is Chair of Group C (Finance & Resource Mobilization) for the African Economic Research Consortium (AERC); and Board Member of New Rules for Global Finance, a policy forum based in Washington DC.