Capital inflows come in all shapes and sizes. This paper highlights that equity flows, especially foreign direct investment, are the most stable forms of capital inflows. In contrast, debt inflows from banks particularly in foreign currency are most prone to booms and busts. These flows also...

Foreign bank branches have a significant presence in the United Kingdom's financial sector, more so than in any other major advanced economy. A lot of their business activities are with non-residents but they are also important sources of credit for UK financial and non-financial companies....