Dating the integration of world capital markets

These phenomena are reflected in cross-listing of securities in several countries, cross-country hedging and portfolio diversification, and 24-hour trading in financial instruments at exchanges around the world. data concepts, definitions, and methodologies and harmonizing them with international ones would promote international data comparability.Many of the channels used for financial transactions have also changed. This improvement in comparability, of course, would apply to the data of other countries as well.In 1991 foreign banks accounted for 18 percent of total banking assets in this country and operated 565 offices (Federal Reserve Board of Governors, 1993:1).Meanwhile, at the time of the "big bang" of 1986—the deregulation of securities markets in the United Kingdom—many U. securities firms and banks expanded their presence in London through acquisitions and other means.Given the difficulties involved and the budgetary constraints faced by statistical agencies in the public sector, several questions arise: What is the current need for data on international capital transactions? With the support of the Bureau of Economic Analysis (BEA) of the U. Department of Commerce, the Panel on International Capital Transactions was convened to examine the changes in the global financial environment, assess public and private needs for data on international capital transactions, review the adequacy of existing data, and consider alternative collection methods. The panel's goal has been to develop recommendations for the collection of data on U. international capital transactions to help ensure that the data are accurate, timely, relevant, cost-effective, and useful for decision making in the years to come. Although the changing global trade and financial environment has led several international organizations to undertake initiatives to improve the concepts and methods of compiling international economic statistics, none of the resulting studies focuses specifically on data on U. Appendix B summarizes the results of the panel's canvass of data compilers, filers, and users on the adequacy of the existing data system. Other terms commonly used in the field, and in this report, are "offshore," "abroad," and "overseas," all of which are the same as foreign for purposes of international capital transactions, which are also sometimes called cross-border transactions.

Today, world financial markets are highly integrated, and transactions have become increasingly complex.Additional regulatory authority was provided by the Foreign Bank Supervision Enhancement Act in 1991.external debt burdens took a toll in those countries.During those years, most countries, including the United States, imposed restrictions on international capital movements.Major international institutional agreements after World War II, such as the Bretton Woods agreement and the General Agreement on Tariffs and Trade, liberalized world trade but did little to free the movement of international capital.

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