Central Bank Transparency and Cross-border Banking

Arbeitspapier

We analyze the effect of central bank transparency on cross-border bank activities. Based on a panel gravity model for cross-border bank claims for 21 home and 47 destination countries from 1998 to 2010, we find strong empirical evidence that a rise in central bank transparency in the destination country, on average, increases cross-border claims. Using interaction models, we find that the positive effect of central bank transparency on cross-border claims is only significant if the central bank is politically independent. Central bank transparency and credibility are thus considered complements by banks investing abroad.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 16/2016

Classification and Topics

• Classification: Wirtschaft ; Central Banks and Their Policies ; International Finance: General ; International Financial Markets
• Subject: central bank transparency ; cross-border banking ; gravity model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eichler, Stefan ; Littke, Helge ; Tonzer, Lena
• Event: Veröffentlichung
• (who): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
• (where): Halle (Saale)
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/141306
• URN: urn:nbn:de:gbv:3:2-54634
• Last update: 10.03.2025, 11:46 AM CET