Template-Type: ReDIF-Paper 1.0
Author-Name: Pamela Pogliani
Author-X-Name-First: Pamela
Author-X-Name-Last: Pogliani
Author-Name: Philip Wooldridge
Author-X-Name-First: Philip
Author-X-Name-Last: Wooldridge
Title: Cross-border financial centres
Abstract: Financial centres that cater predominantly to non-residents – which we refer to as cross-border financial centres (XFCs) –are important intermediaries of cross-border financial flows. For analysing capital flows and international interconnectedness, it can be useful to distinguish countries that are home to XFCs from other countries. We improve on previous methodologies for identifying such centres by constructing a measure focussed on the intermediation activity inherent to XFCs and explicitly taking into account the non-normal distribution of this measure across countries when detecting outliers. We also minimise volatility in the set of countries identified as XFCs over time by de-trending the data and pooling years. Our methodology identifies a core set of 12 countries as XFCs over the 1995-2020 period, but the countries vary with time and different measures of activity.
Length: 31 pages
Creation-Date: 2022-07
File-URL: https://www.bis.org/publ/work1035.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1035.htm
File-Format: text/html
Number: 1035
Keywords: international financial centres, offshore banks, outlier detection
Classification-JEL: F21, F36, G15
Handle: RePEc:bis:biswps:1035