Stein: Dollar Funding and Global Banks

From federalreserve.gov

Thanks very much. It's a pleasure to be part of this panel on the future of financial globalization. I will focus my remarks on one important aspect of this issue--namely, the growing use of wholesale dollar funding by global financial institutions. I'll begin by briefly discussing research I've been doing, along with my coauthors Victoria Ivashina and David Scharfstein, which examines some of the consequences of this funding model during times of market stress.1 I'll then touch on the policy implications of this and related work. But first, the usual disclaimer: The views that follow are my own and do not ... (full story)