https://macropaperwarehouse.com/authors/michael-curran/Michael CurranHugo -- gohugo.ioen-usWed, 01 Jan 2025 00:00:00 +0000https://macropaperwarehouse.com/papers/uncertainty-shocks-and-the-cross-border-funding-of-banks-unmasking-heterogeneity/Wed, 01 Jan 2025 00:00:00 +0000https://macropaperwarehouse.com/papers/uncertainty-shocks-and-the-cross-border-funding-of-banks-unmasking-heterogeneity/<p>Research question and motivation: How does country-specific uncertainty explain variation in the cross-border funding of banks? Studying this link is practically relevant given rising reliance on international borrowing under financial globalization and the role of international banking in transmitting the Global Financial Crisis (GFC). The few prior studies on uncertainty and cross-border bank funding (Cerutti et al. 2017; Choi and Furceri 2019) focus on a single uncertainty measure and aggregate flows. Bénétrix and Curran&rsquo;s innovation is to decompose both the funding source (banks vs. non-banks) and the type of uncertainty measure, &ldquo;unmasking&rdquo; heterogeneity that aggregate panel studies hide.</p>