Endogenous deposit dollarization

Endogenous deposit dollarization by Broda, Christian Download PDF EPUB FB2

Endogenous Deposit Dollarization Christian Broda and Eduardo Levy Yeyati Federal Reserve Bank of New York StaffReports, no. February JEL classification: G11, G21, F31 Abstract This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments.

is a platform for academics to share research papers. Abstract. This paper explores sources of deposit dollarization unrelated to standard moral hazard argue that the equal treatment of peso and dollar claims on a bank in the event of default can induce banks to attract dollar deposits.

Request PDF | Endogenous Deposit Dollarization | This paper explores sources of deposit dollarization unrelated to Endogenous deposit dollarization book moral hazard arguments. Endogenous Deposit Dollarization.

Christian Broda and Eduardo Levy Yeyati () Journal of Money, Credit and Banking,vol. 38, issue 4, Abstract: This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments.

We argue that the equal treatment of peso and dollar claims on a bank in the event of default can induce banks to attract dollar deposits Cited by:   This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We develop a model in which banks choose the optimal currency composition of their liabilities.

We argue that the equal treatment of peso and dollar claims in the event of bank default can induce banks to attract dollar deposits above the socially desirable by: Endogenous Deposit Dollarization Article (PDF Available) in Journal of money credit and banking 38(4) January with 43 Reads How we measure 'reads'.

Endogenous Deposit Dollarization This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We argue that the equal treatment of peso and dollar claims on a bank in the event of default can induce banks to attract dollar deposits above the socially desirable level.

The New York Fed has been working with tri-party repo market participants to make changes to improve the resiliency of the market to financial stress. Outreach & Education. Outreach & Education; Community Development Endogenous Deposit Dollarization.

An increasing share of bank deposits in developing countries is denominated in foreign currency. This trend may have adverse implications for the cost and availability of credit.

Analyzing new data, Honohan and Shi find that the general trend toward increased use of foreign-currency-denominated bank deposits in emerging markets has continued.

Endogenous deposit dollarization This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We develop a model in which banks choose the optimal currency composition of their liabilities.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We develop a model in which banks choose the optimal currency composition of their liabilities.

We argue that the equal treatment of peso and dollar claims in the event of bank default can. Endogenous Deposit Dollarization.

By Christian Broda and Eduardo Levy Yeyati This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We argue that the equal treatment of peso and dollar claims on a bank in the event of default can induce banks to attract dollar deposits above the socially Author: Christian Broda and Eduardo Levy Yeyati.

Endogenous Deposit Dollarization. By Christian Broda, Eduardo Levy Yeyati and Augusto De La Torre. The distortion arises because dollar deposits are the only source of default risk in the model, but dollar depositors share the burden of the default with peso depositors. The incentive to dollarize is reinforced by common banking system.

deposit accounts are effectively exported through the premium. In contrast, greater dollarization is clearly banking system, thereby reducing the supply of credit. associated with a higher pass-through coefficient from Moreover, increases in deposit dollarization are exchange rate change to consumer prices, potentially.

The dollar's status as the world's preeminent currency, together with the U.S. military, has underlain American power since World War II. In a sweeping review of one of the most seminal yet least noticed developments in international affairs, Gal Luft and Anne Korin describe how an emerging coalition of revisionist countries, rogue governments, techno /5(3).

This paper explores sources of deposit dollarization unrelated to standard moral hazard arguments. We develop a model in which banks choose the optimal currency composition of their liabilities.

We argue that the equal treatment of peso and dollar claims in the event of bank default can induce banks to attract dollar deposits above the socially Author: Christian Broda and Eduardo Levy Yeyati.

Costs and Benefits of Dollarization Myriam Quispe-Agnoli deposits in the money supply (inclusive of foreign currency deposits), as shown in Graph 1. Graph 2 illustrates another indicator of dollarization, the share of foreign currency deposits in total deposits. For a more precise measure of the degree of dollarization, the previous indicators.

Dollarization "is figuring out what your offering is really worth - in dollars and cents - to your customer." The book discusses the role of dollarization in sales, marketing, and product development. Rather than saying your product reduces downtime, demonstrate that the product can save $15, by reducing 30 minutes of downtime at $ per Cited by: 3.

Broda, C. and E. Levy Yeyati () ‘Endogenous Deposit Dollarization’, Staff Report No. (New York: Federal Reserve Bank of New York). Forthcoming in the Journal of Money, Credit and Banking. Google ScholarCited by: 7. Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies.

We study the impact of financial dollarization, differentiating across foreign currency deposits and credit on financial depth, access and .This paper addresses the challenges to prudential supervision in highly dollarized economies, where central banks and supervisors may be constrained in the use of standard money and financial policy tools.

The study's conclusions are the basis of an ongoing policy dialogue with IMF member countries, standard-setters in the financial area, and academia.Abstract. Partial dollarization affects a wide set of countries across the world and has generally gained ground in recent years.

The ratio of on-shore foreign currency deposits to total on-shore deposits increased sharply in Latin America, in transition economies, and in Central America over the period – (Table ).Author: Alain Ize.