This paper identifies five factors that can capture 95% of the variance across 39 US dollar exchange rates based on the principal component method. A time-varying parameter factor-augmented vector autoregressive (TVP-FAVAR) model is used to analyze the determinants of movements in these exchange...

Major fintech advancements in recent years have attracted the attention of financial regulators around the world, including the Hong Kong Monetary Authority (HKMA). HKMA stands ready to embrace technology and innovations that emerge in the course of fintech development. In particular, HKMA...

This paper uses a comprehensive and detailed bank-level data set to study how the divergence of central bank balance sheet policy in the US vis-à-vis the euro area and Japan affects the supply of international US dollar loans by global banks. Our empirical findings support the view that the...