This paper presents and analyses new datasets of de jure Currency-Based Measures (CBMs) directed at banks in a sample of 49 countries between 2005 and 2013. These measures are bank regulations that apply a discrimination−e.g. a less favourable treatment−on the basis of the currency of an operation, typically foreign currencies. The new data shows that CBMs have been increasingly used in the post-crisis period, including for macro-prudential purposes. In particular, some Emerging Market Economies, including some OECD countries, have increasingly resorted to and tightened their CBMs, especially to manage capital inflows. Information from these new datasets is also matched with measures on countries’ inability to borrow in domestic currency on international markets, defined as the original sin concept. With the exception of China, only countries suffering from original sin used and tightened CBMs on banks’ foreign exchange liabilities.
Currency-based measures targeting banks - Balancing national regulation of risk and financial openness
Working paper
OECD Working Papers on International Investment
Share
Facebook
Twitter
LinkedIn
Abstract
In the same series
-
31 July 2023
-
Working paper30 November 2022
-
26 July 2021
Related publications
-
26 July 2021
-
Working paper14 September 2017
-
20 September 2007