Optimal Bank Reserve Remuneration and Capital Control Policy

2021 ◽  
Author(s):  
Chun-Che Chi ◽  
Stephanie Schmitt-Grohe ◽  
Martin Uribe
Keyword(s):  
Control Policy ◽  
Capital Control ◽  
Bank Reserve

scholarly journals Optimal Bank Reserve Remuneration and Capital Control Policy

2021 ◽  
Author(s):  
Chun-Che Chi ◽  
Stephanie Schmitt-Grohé ◽  
Martín Uribe
Keyword(s):  
Control Policy ◽  
Capital Control ◽  
Bank Reserve

Capital Control Policy Changes, 1951-1998

2004 ◽  
Author(s):  
Chad Rector ◽  
Scott L. Kastner
Keyword(s):  
Control Policy ◽  
Capital Control ◽  
Policy Changes

Institutions, capital control, and liquidity creation

2016 ◽  
Vol 8 (3) ◽  
pp. 396-422 ◽  
Author(s):  
Babu G. Baradwaj ◽  
Yingying Shao ◽  
Michaël Dewally
Keyword(s):  
Banking Sector ◽  
Dynamic Effect ◽  
Control Policy ◽  
Economic Conditions ◽  
Economic Downturn ◽  
Capital Control ◽  
Content Type ◽  
The Creation ◽  
The Impact

Purpose The purpose of this study is to conduct an empirical investigation on how country-specific characteristics such as the quality of the institutional environment and the restrictiveness of capital control policy affect domestic financial sector’s ability to provide liquidity to the economy. Design/methodology/approach This study uses panel regressions on international banking data across 102 countries from Bankscope. Findings The results show that strong institutions and looser capital control in a country enhance the banks’ role as the liquidity provider to the economy. The study also finds that institutional quality and capital control have a dynamic effect that influences the creation of liquidity. Better institutions benefit the creation of liquidity in either under normal economic conditions or during economic downturn. Loosened capital control, as a result of financial openness, facilitates liquidity creation under normal economic conditions. Originality/value This study complements the research on the role of country-level institutions in financial and economic development and suggests a liquidity channel through which a country’s institutions can further economic growth. The study also provides evidence on the impact of a country’s control of capital flows on the role of banking sector in domestic economy.

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